In the middle of the night, an Alaskan Bull Worm lurks into Bikini Bottom and causes havoc, destroying everything in sight. Soon it appears at SpongeBob's house and eats the pineapple. SpongeBob soon wakes up and the next day announces that it appeared at midnight eating everything. The Bikini Bottomites agree with this too and complain how it ate some of their belongings. They all try to plan a way to defeat this monster.
Patrick soon suggests moving the town to another location. But all the people disagree with this and Mr. Krabs suggests that there has to be someone tough enough who can take on the worm. An old man with a hook scrapes the window and looks like he's just the man to fight it, but is revealed to be a weak man who actually needed to go to the restroom. Sandy decides to fight the monster, as revenge for stealing her tail. SpongeBob tries to persuade her not to go near it, but she keeps on going at his every attempt because she says that she is strong. SpongeBob starts crying and tells her that he doesn't want her to be killed, but Sandy doesn't give in. So she continues walking along with SpongeBob trying to get her to turn back, until they reach a cave that Sandy identifies as the worm's lair. She goes inside the cave, while SpongeBob hides behind a small rock, panicking, and Sandy keeps on coming out, telling SpongeBob good news that she's winning. He keeps trying to tell her something but she doesn't give him enough time and goes back in. When she comes out on the "worm", she states that she won and she even reclaimed her tail. However, SpongeBob reveals that she didn't defeat the worm, but she defeated its tongue, and the entire cave is the worm. Upon realizing this, Sandy begins calm then screams "RUN FOR YOUR LIFE!!!!!" as the worm begins chasing them.
SpongeBob and Sandy run, and during their attempt to escape, SpongeBob reveals that he was right and Sandy was never strong enough for the worm, and she admits it after SpongeBob persuades her to say it. Suddenly, they escape the worm by using a paper clip and a piece of string which SpongeBob said was Sandy's tail earlier in the episode, and uses it this time to grapple onto a tree, and Sandy says, "We should be nice and safe up here" while they balance on the worm's back, but then the worm falls off a cliff. SpongeBob and Sandy scream and make it off the worm's tail to the land and think they have saved the town, and head off to tell everyone.
However, it is then shown that the people actually decided to go through with Patrick's idea to push Bikini Bottom somewhere else, and the defeated worm lands right on the city, destroying it and saying "Ow" as the episode ends.
This is the second episode where a character enters in a creature cavity thinking it is a cave. The first was Prehibernation Week.
When the mother said that the worm ate her children's homework, it is a reference of the excuse what children say to get out of they're homework when they say the dog ate their homework.
Patrick's idea to take Bikini Bottom and push it somewhere else has become popular on the internet and was popularly known as Pushing Patrick or Push It Somewhere Else Patrick.
Ironically, at one point, Squidward said that Patrick's idea may just be crazy enough to get everyone killed. At the end of the episode, everyone was crushed by the worm when it crashed on top of the town.
SpongeBob wore a squirrel mask in this episode that had previously appeared in the episode Karate Choppers.
The episode's plot is similar to the movie, Tremors. It featured worm-like monsters called Graboids which terrorized (and ate) people. The end, which showed the Alaskan Bull Worm fall off the cliff, is a parody of the end of Tremors.
The episode also references the novel "Dune" when Sandy finds the worm sign and when Sandy and SpongeBob ride the worm.
At the beginning, when everyone is discussing how to capture the worm, it is a parody of the classic film, Jaws.
In the scene where Sandy enters the worm, she thinks the tongue is a worm. This may be a spoof of the classic film, The Empire Strikes Back where the Falcon flies into the worm's mouth.
When the worm is chasing Sandy and SpongeBob, it is shown to be as tall as five times Sandy's height, but when it falls off of the cliff, it is shown to be bigger than all of Bikini Bottom.
When Sandy realizes that she only beat up the worm's tongue and that what she thought was a "cave" was the actual worm, the captions say "(voice breaking)" over her lines, even though she was nowhere near tears. The closed-captioners probably made this mistake because Sandy was so hesitant from being nervous.
During the chasing scene the worm constantly changed size if you compare it to SpongeBob and Sandy.