SpongeBob and Patrick go to the Palace of Pranks, a prank store in search of the ultimate prank. To their delight, the manager named Frank sells them a rare can of invisible paint for just one dollar. Before they use it, Patrick remembers that the paint will stain clothes, and then he and SpongeBob take their clothes off so they aren't stained with the invisible paint. They decide to spray a park bench and sit on it, but get in an argument over who gets to spray the bench. During the fight, they spray each other until "several bad puns later," they are both completely invisible.
After asking a man for the time and accidentally scaring him away, SpongeBob realizes that he and Patrick can pretend to be ghosts and prank the whole town. They pretend to be ghosts and go around frightening everyone (moving things around in Sandy's treedome, eating a cake Mrs. Puff was going to eat, painting a moustache on Squidward's face, etc.), until Mr. Krabs, who "ain't afraid of no ghosts", is the last person in Bikini Bottom to be haunted. They attempt to frighten him and succeed until they attempt to burn a dollar bill. Mr. Krabs' fear is overcome by his love of money, and he attempts to extinguish the match with a bucket of water. The invisible spray is washed off of Patrick and SpongeBob, exposing their identities, and their nudity.
Though embarrassed, Mr. Krabs comforts SpongeBob and Patrick by saying he forgives them and was fond of pulling pranks in his youth. However, when they attempt to leave, the Krusty Krab now contains nearly everyone in Bikini Bottom, and Mr. Krabs showcases the "live, nude pranksters". An extremely embarrassed SpongeBob and Patrick try to cover themselves, and SpongeBob says "We should've bought the whoopee cushion!" as the episode ends.
It is revealed in this episode that Sandy is originally from Austin, TX.
When her escape pod lands it's in the Austin area.
In Spanish, the fish that says "toast" says "Fantasmas," or "ghost," in the Filpino dub he says "gusto nyo?," or "want some?" In the Hebrew version, he says "sandwich"; in Korean, he says "What's that?" in Indonesian version the fish says "Hantu (Indonesian version translated "Ghost")," not "Toast."
Also, Spongebob didn't say "We'll go spray the park bench and then sit on it." he said "We'll go spray ourselves and let the show begin!"
Sandy's rocket breaks the surface of the water in the Pacific Ocean near the bottom of South America, revealing Bikini Bottom's location, and gives how it can snow in Bikini Bottom because of its location.
The bad puns what SpongeBob and Patrick said while spraying each other with the Invisible Spray was...
"I gotta hand it to you!" Patrick sprayed SpongeBob's right hand.
"Kind of gives you an empty feeling, huh?" SpongeBob sprays Patrick's chest.
"I see what you mean!" Patrick sprays SpongeBob's left eye.
"No guts, no glory!" SpongeBob sprays Patrick's gut.
SpongeBob actually sprayed Patrick in the crotch when he says "No guts, no glory."