At the Krusty Krab, the customers are very hungry. Squidward asks SpongeBob why the orders are not ready yet. SpongeBob explains that he is practicing for an oral report that he must do for boating school. Squidward says that "public speaking" causes stress, but then SpongeBob explains how he is good at "public speaking." SpongeBob then walks out, ready to give the customers their orders, and gets scared because they are acting zombie-like.
SpongeBob then realizes that he has stage fright. The customers start fighting for the single order as Squidward is beaten up after trying to give a customer his order, which makes SpongeBob even more frightened. It then cuts to Patrick's rock. Patrick opens it, only to realize he has the wrong rock, but SpongeBob pulls him in. SpongeBob asks Patrick to help him practice by listening to his speech. SpongeBob has to practice if he wants to pass then he has to give the report.
SpongeBob begins to become very nervous, and Patrick decides that SpongeBob should see Sandy for help. Sandy gives SpongeBob a pair of underwear with goggles on it, so SpongeBob can see people in their underwear so he will not feel nervous.
The next day, SpongeBob is next to do his oral report and then he gets nervous. SpongeBob asks Patrick for the googles, and he gives SpongeBob the goggles while accidentally breaking them in the process after polishing them.
Billy tells him to hurry up, and SpongeBob sees him in his underwear, he is relieved. Then he sees the whole class in their underwear. SpongeBob begins laughing and Mrs. Puff asks him why. SpongeBob sees Mrs. Puff's underwear and starts laughing even harder. SpongeBob begins reading his report but the goggles malfunction and everybody's underwear start angrily telling him to get on with it. SpongeBob screams and runs away, he drives Mrs. Puff's boat, and Patrick and Mrs. Puff chase him. The police notice that SpongeBob ran a stop light and chase after him. SpongeBob then crashes through various buildings. The police question if he knows about "boating safety" and SpongeBob goes through a long explanation of "boating safety." The police start crying and say it is beautiful. Mrs. Puff says that SpongeBob will have to go to jail and she will not have to teach him anymore. The police explain how she was the one who taught him and they take her to jail, much to her dismay. After this, Patrick is happy that SpongeBob conquered his fear, and puts on the underwear glasses. He notices that SpongeBob's underwear starts talking angrily to him, so he runs away, ending the episode.