Mr. Krabs' grandfather is visiting him. He is a pirate, unlike Mr. Krabs, who he thinks is a pirate also, instead of owning the Krusty Krab. Mr. Krabs tells SpongeBob that he was a pirate too like his grand-dad "Grandpa Redbeard" but he quit because his crew took all the money, and then he fired his crew. To please his "grandpappy," Mr. Krabs gets himself, Squidward, Patrick, and SpongeBob to disguise as pirates, rebuild the Krusty Krab into a pirate ship, and try to convince him that they are trained pirates.
Ironically, Grandpappy arrives and sees the ship and reveals that he was beginning to think Mr. Krabs was lying to his "old granddad". Grandpappy soon orders Mr. Krabs to show him what his ship can do. Mr., Krabs pretends to sail the ship. Squidward makes it look waves are coming up. Patrick blows water up in the air for effect. Mr. Krabs has to make a comment twice to get SpongeBob to do his part. SpongeBob's job is to play a record secretly (It is to make it sound like wind). Grandpappy is still fooled.
Grandpappy sees someone ahead and soon gets his "crew" to go to their stations for battle. Mr. Krabs is worried that it is the real deal. Mr. Krabs reveals it is his daughter, Pearl. Grandpappy, thinking it is a sea witch, claims he going to make her meet her maker. Before he can kill her, Mr. Krabs stops him just in time. Grandpappy asks Mr. Krabs why and Mr. Krabs responds he is only trying to inspect the "cannon". The fiery "cannon" is actually a fiery bag, as shown. Grandpappy wonders why it is so.
Pearl is angry because Mr. Krabs didn't come quickly. Mr. Krabs soon manages to shoo Pearl away. Mr. Krabs lets Grandpappy know that he has already taken care of it. Grandpappy sees through Mr. Krabs game and becomes so infuriated that the record on his nose literally explodes. Mr. Krabs tries to reason with him, but Grandpappy makes Mr. Krabs say that the code is to never tell a lie. Mr. Krabs says that he's a dirty liar.
Mr. Krabs breaks everything that is a lie and takes off the "crew"s clothing. The only thing left is the Krusty Krab and its true belonging. Mr. Krab reveals to Grandpapy that truly is the boss of a restaurant. Surprisingly to Mr. Krabs, Grandpappy is impressed for his effort of Mr. Krab's restaurant. Soon, Grandpappy "borrows" some of Mr. Krab's "booty". Grandpappy leaves on a lifeboat, laughing maniacally like a pirate would do normally. Mr. Krabs, chuckling, says that he (himself) knew he got his talent from his Grandpappy.
( ‣ ) Associated production music
( • ) Original music
( ◦ ) SpongeBob music
‣The Drunken Sailor - ? [title card] • ? - Michael Bolger, Nicolas Carr [mail truck arrives] •Vibe Sting - Nicolas Carr [message in a bottle] ‣Sailor's Sting 4 - Michael Bolger, Nicolas Carr [letter from Krabs' grandpa] ‣Dramatic Impact 5 - Ivor Slaney [Krabs gasps] • ? - Michael Bolger, Nicolas Carr ["I come from a whole family of pirates."] ‣ ? [flashback starts] ‣Buccaneer Overture - David Arkenstone [Krabs as a pirate] • ? - Michael Bolger, Nicolas Carr [Krabs sold his ship/flashback ends] • ? - Jeremy Wakefield [SpongeBob suggests making the Krusty Krab into a pirate ship] ‣March to Battle - Laurie Johnson ["All right, me hearties."] •Steel Sting - Jeremy Wakefield [Krusty Krew dressed like pirates] ‣March to Battle - Laurie Johnson ["I want you to look like a pirate."] • ? - Nicolas Carr [Patrick's bad breath] ‣The Jovial Buccaneers - John Fox ["Let's get this restaurant ready to sail!"] ‣Sea Battle - John Fox [turning the Krusty Krab into a pirate ship] ‣A Pirate's Life for Me (a) - Ron Goodwin [Redbeard arrives] ‣Sailor's Sting 4 - Michael Bolger, Nicolas Carr ["It's good to see you, your ship after so many moons."] ‣Sea Fanfare - John Fox [pretending to sail] ‣ ? [fake waves] ‣Dramatic Sea Battle - Gerhard Trede [film of sea monster] ‣Sea Battle - John Fox ["That's me boy!"] ‣Steel Link (b) - Jeremy Wakefield ["Ready, Squidward?"] ‣Sword Fight - Sam Fonteyn [Krabs pretending to fight the sea monster] ‣Tympup B - Sammy Burdson, John Charles Fiddy ["Check the size of it, Granddad!"] •Hawaiian Sting - Nicolas Carr ["Check the size of it, Granddad!"] • ? - Nicolas Carr ["Granddad?"] ‣Pirate Ship - David Farnon [Redbeard in the crow's nest] ‣ ? [Pearl yelling] ‣No Way Out - Harry Bluestone, Emil Cadkin ["Prepare to meet your maker, sea witch."] •Drama Sting - Sage Guyton, Jeremy Wakefield [papier-mache cannon] ‣Sailor's Sting 3 - Michael Bolger, Nicolas Carr [Pearl still yelling] ‣Steel Sting (a) - Jeremy Wakefield [Patrick gargling] • ? - Michael Bolger, Nicolas Carr ["Just a second."] ‣Drama Link (d) - Hubert Clifford [Redbeard growls] ‣Big Bad Giant - Paddy Kingsland ["Nothing smells stinkier than a lie!"] ‣International Law - Peter Yorke ["A pirate never lies!"] ‣Sword Fight - Harry Bluestone, Emil Cadkin [Krabs destroying the ship] ‣Botany Bay - Michael Bolger, Nicolas Carr ["I'm no pirate, just a lowly restaurant owner."] • ? - Michael Bolger, Nicolas Carr ["Why, I couldn't be more proud."] • ? - Nicolas Carr [cash register missing] ‣The Drunken Sailor - ? [ending]
The title card is similar to the title card of the episode, "Shell of a Man".
This is the second time SpongeBob, Patrick, and Mr. Krabs pretend to be pirates. The first was in "Arrgh!".
The Pirates' code is a reference to the "Pirates of the Caribbean" movies.
When post man gives the letter for Mr. Krabs, the Krusty Krab is misspelled the Krysty Krab.
When SpongeBob jumps up to catch the harpoon, he is wearing his normal clothes, but when he next appears, he is wearing his pirate outfit again.
In the shipbuilding montage the Menu is covered up but, later the phrase, "Galley Grub" can clearly be seen in the background.
In the episode Krusty Krab Training Video, it says that the Krusty Krab was formerly a retirement home, and its sign says the Rusty Krab (later painted, Krusty Krab). During the flashback when Mr. Krabs sells the ship, he has the Krusty Krab sign. This means the sign was either made before the restaurant, or the sign came from the ship.