Peppermint Larry is preparing for the Stormalong Pun-Off, where he will compete with comedy legend, Punsie McKale, in joke-telling. To practice, Peppermint Larry teaches Flapjack puns, as Flapjack is a very bad joke-teller. On the day of the Pun-Off, Peppermint Larry starts getting nervous and puts on a very bad show, and Punsie McKale clearly puts on a better show. K'nuckles then gets bored with their jokes and tells some jokes of his own. K'nuckes is so well-received by the audience, that the audience goes wild with laughter and sink Stormalong Harbor. In the end, Peppermint Larry and Punsie McKale are shown sailing on the sea inside a giant mug of root beer because, according to Peppermint Larry's joke, "Root beer floats!"