The episode begins when SpongeBob and Patrick are getting a tan on Goo Lagoon. Suddenly, Larry the Lobster comes riding in on a motorcycle, kicking up sand in SpongeBob's and Patrick's face. However, everyone cheers for Larry and soon, they talk to him. Larry says he's a professional daredevil who loves to live life to the fullest. Then Larry points out that SpongeBob and Patrick are big scaredy cats and need to be more like him. Larry drives away leaving Patrick in deep thought.
The next day, SpongeBob and Patrick are blowing bubbles, when Patrick says that their lives are boring, and that they need to live like Larry. Patrick then jumps on a seahorse, which bucks him off and severely injures Patrick. Meanwhile, SpongeBob is riding a kiddie ride at the grocery store. Later that day, Patrick kicks down SpongeBob's door, and drags him to the junkyard. Patrick then jumps in a boat going on the conveyor belt. The boat (with Patrick inside) is then crushed by the junkyard crusher, while SpongeBob only watches in horror as Patrick is slowly crushed.
Even later that day, Patrick breaks down the door again (still inside the crushed car) and pulls SpongeBob to the outskirts of Bikini Bottom to a deep canyon next to the canyon is a long board leading to the bottom, which Patrick says he will skate down. He tells SpongeBob to join him, but SpongeBob says that going down the ramp would be stupid, and would certainly kill them. Patrick shrugs and calls SpongeBob a chicken. Patrick then skates down, and flies right into the mouths of several hungry monsters, Patrick's fate is unknown.
The next day, SpongeBob is working at the Krusty Krab, when Patrick (who apparently survived the monster attack) is running towards the restaurant, trying to get away from five mad bikers (Possibly the Wild Ones). He tells SpongeBob that he was right, and that he would never try such stupid stunts again. When SpongeBob goes outside to talk to the bikers, he knocks down their bikes. SpongeBob and Patrick run down the street, and SpongeBob gets a rush of adrenaline. SpongeBob shouts that he's living like Larry, and is now obsessed with daredevil stunts. The bikers hit SpongeBob with their bikes, sending SpongeBob flying into the air.
Later that day, SpongeBob and Patrick are on the beach again, but this time on a giant arrow aimed towards hundreds of sharp rocks (Ripper's Reef). Patrick worries that they will get hurt, but SpongeBob prepares to cut the rope anyway. Meanwhile, Larry notices what they are doing and races to stop them. But Larry is too late, SpongeBob cuts the rope and they fly towards Ripper's Reef. Larry hooks a rope on the arrow, and is pulled up too. SpongeBob shouts with glee, while Patrick and Larry scream. They slam into Ripper's Reef at full force, and all are impaled with the rocks.
Later at the Bikini Bottom Hospital, Patrick and Larry are put in full body casts, while SpongeBob is put in a wheel chair. SpongeBob says that it's time for his next stunt, and asks "What would Larry do?" Larry gets mad and chases SpongeBob out of the hospital.
Larry will not have another major appearance until the episode "Larry's Gym."
Larry the Lobster acts like he doesn't know SpongeBob and Patrick, but in other episodes, such as "Ripped Pants," they are good friends with him. One could argue that this episode occurred before "Ripped Pants."
The line 'What would Larry do?' parodied the popular Buffy the Vampire Slayer catchphrase 'What would Buffy do?', which itself is a parody of the phrase, "What Would Jesus Do?"
When SpongeBob says "I wonder how Patrick's doing with his "living like Larry" thing." one of his teeth turn from white to yellow for a split-second.
SpongeBob appears to knock over 8 motorcycles, yet only six of them were circling him afterwards.
When Patrick and SpongeBob are first shown on the huge arrow, SpongeBob is wearing his beach suit. However later, when an upper-view close-up is shown of Patrick scared and SpongeBob saying "Whoowoowoo!!!," you can briefly see SpongeBob's regular clothes are on him instead. But when the arrow is shown fully again, SpongeBob is back to wearing the beach suit.
Right before it cuts to Patrick and Larry in the hospital, there is a shot that shows the Bikini Bottom Hospital, but Larry's tail in bandages is shown in the bottom right, meaning the last shot of the episode with Larry chasing SpongeBob right before the scene cuts to black was used in a shot right before it cut to Patrick and Larry in the hospital, and was mirrored.