The episode begins with Patrick freaking out over a sea spider. He crashes into a chair and finds a coupon for free ice cream. He leaves his rock and finds SpongeBob. Patrick tells him that he will buy SpongeBob an ice cream using his coupon. When he finds out that SpongeBob already has an ice cream, he throws it on the ground and tells him that he would buy a new one.
Patrick goes out to get the ice cream but is caught by Mr. Krabs' crane and Mr. Krabs says he felt the presence of something free. Mr. Krabs tries to con Patrick out of the coupon and nearly succeeds in obtaining it from the gullible sea star in exchange for a handshake but Squidward intervenes admonishing his boss for taking advantage of Patrick's naïve nature. A defeated Mr. Krabs walks off as Patrick is angry at Squidward for stopping his deal but Squidward releases Patrick from the crane and leaves telling Patrick that Mr. Krabs was really trying to steal his coupon.
Hearing this, Patrick becomes paranoid and believes that everyone is after his coupon causing him to run around the town getting caught in various situations until he falls off a cliff ending up in ice cream land.
At the park, Patrick orders a large amazing ice cream and tries to sample it before giving it to SpongeBob. However, the ice cream coupon is out of date causing Patrick to throw a tantrum resulting in him being kicked out by one of the staff employees.
Outside the park, the employee tells Patrick if he wants to redeem his coupon he would have to go to the Ice Cream King who lives at the top of the hill outside the park.
Patrick goes to see the King who is revealed to be a starfish as clueless as him (so much that all the coupons are expired as he doesn't know the year). The Ice Cream King makes Patrick a deal, if he were to beat him in competition he would redeem the coupon and give Patrick the free ice cream. The two engage in series of meaningless contests which ends with Patrick obtaining victory over the Ice Cream King who agrees to honor the coupon. However, he gives Patrick a cone out of his armpit with the ice cream coming out hairy to Patrick's surprise and disgust.
Patrick returns to SpongeBob saying he wanted to give SpongeBob an ice cream but it melted so he got him a hearty-handshake (using Mr. Krabs' arm). However, SpongeBob lifts his dejected friend's spirits by showing he obtained a better looking Ice Cream (similar to the one Patrick tried to get earlier) and the two friends proceed to dine on the ice cream.