On one fine day at the Krusty Krab, Patrick is shown behind the restaurant climbing out of a dumpster eating a Krabby Patty. The camera then pans over to SpongeBob, showing him reading the "Krusty Krab Schedule" book, much to Squidward being annoyed. SpongeBob then claims that the book has a list of "his happiest memories". Squidward takes the book and "accidentally" drops it on the grill. However, SpongeBob has multiple copies of the book in a cabinet, which he proceeds to get one. SpongeBob then asks Squidward if he has a happiest memory, in which he replies, "No". Feeling concerned, SpongeBob tries to ask Squidward if he can help make a happiest memory for him, which he accepts. First, SpongeBob takes Squidward to a concert. That didn't go well, however, since the violin player accidentally shot Squidward in the eye with the violin. Then, both of them head to the Bikini Bottom Art Museum. One of Squidward's masterpieces is in the museum, which is praised by critics.
Squidward is happy until a famous art critic named Fiasco burns his artwork with a flame thrower. And after that, SpongeBob takes Squidward on a hot air balloon ride. That doesn't go well, since Squidward is afraid of heights, so SpongeBob tries to get Squidward down by popping the balloon (because the balloon has no heater to make it deflate) and both of them land on a mountain which is actually Mount Bikini, ruining a mountain climber's chance to be the first one on the mountain. Then, the two along with the mountain climber slide off the mountain due to an avalanche. When SpongeBob and Squidward slide back to their homes, Squidward insists that he will never have a happiest memory. 2 weeks later, Squidward is left in his house doing nothing but being unhappy. SpongeBob then becomes even more concerned for Squidward and tries to get ahold of him, but fails. He then traps Squidward in a box, and takes him to the Krusty Krab, where he reveals that he created a party to cheer Squidward up. Unfortantley, SpongeBob failed to get anyone else to come, because some of them were busy or sick, so instead he made 100 paper-mâché life-sized models of himself. Squidward hates seeing more than one sculpture of SpongeBob in one place so he goes beserk and destroys all the paper-mâché sculptures and claims this to be his "happiest memory".
This episode is the first episode in the series to contain the 2012 Paramount logo.
This episode shares the same name with the song by Michelle Branch.
The episode also shares the same name with a song sung by Megan and Liz.
This and its sister episode shows Squidward having a mailbox on his door.
This marks the second appearance of Fiasco. The first being Fiasco!
At one point of the episode, Squidward shoves his head in the oven, only to take out burnt brownies. Later in the episode, he hangs a noose-like rope, revealing that he's hanging up a cage for a clam. Both of these were supposed to resemble suicide attempts, and were possibly an underhanded nod to the Creepypasta story Squidward's Suicide.
At the beginning, for most times when SpongeBob laughs, you can hear a squeaking noise. This is the second time that happened, first was in Funny Pants.
This is the second time the mailman has messed up Squidward's name. The first time was in The Great Snail Race.
When Squidward climbs the walls during his rampage, it's a reference to the Wacky Wall Walker, a toy which is thrown against walls, sticks to them, and looks like it's crawling down as it falls. The toy is designed to look like an octopus.
This is the 2nd time a skull and crossbones appear in a character's eyes, the 1st time was in Prehibernation Week.
The cage that Squidward had kept a scallop inside has the same design of the cage Triton was locked in from The Clash of Triton.