At Goo Lagoon, SpongeBob and Patrick are sunbathing. SpongeBob remarks on how cool Larry the Lifeguard is, and SpongeBob fantasizes about how "cool" it would be if he was a lifeguard, but Patrick doesn't agree, disliking lifeguards. SpongeBob then says that he's "just as cool as Larry." SpongeBob claims that if he is not as "cool" as Larry, that he will be struck by "a flying ice cream truck. AND LIVE!" Larry helps him up after the truck actually falls on him and notices vanilla ice cream on his nose. Thinking that it's sunscreen, and that therefore he is a lifeguard, he offers SpongeBob to help him with his lifeguard duties.
As a lifeguard, SpongeBob becomes very popular and does many fun activities. However, when Larry hears Bill drowning and saves him, SpongeBob realizes that being a lifeguard is much more than giving ice cream and sitting in a tower, but that it also means that he has to guard other people's lives. Larry suddenly leaves for a tanning booth, leaving SpongeBob, who can't swim, in charge of the beach. SpongeBob then imagines all the fish dead in a graveyard in the goo, and then alerts all the fish to an "emergency" that is not even going on. When everybody asks, confused as to what the "emergency" is, SpongeBob, forgetting that sharks are sea animals too, improvises and states that the "emergency" is a shark attack. A shark family then says that they are the ones he is referring to. Then he announces that there is a sea monster, but a sea monster then emerges from the crowd, slapping SpongeBob with his tail fin after explaining how impolite he is to sea monsters and everybody then knows that there is no emergency.
SpongeBob begins panicking when he sees everyone playing in the water in a dangerous way, such as people splashing each other, people water skiing on top of each other, two kids playing with a ball inside of Billy the killer whale's mouth, and Frank throwing Scooter into a rock. SpongeBob then lures everyone out of the water with ice cream. After they eat it, he tells them that they now have to wait one hour before going back in the water and binds them with police tape. Thinking that everyone is safe, SpongeBob settles down to relax. However, the beach guests get upset at this and one fish states that Larry is a better lifeguard than SpongeBob is. SpongeBob announces that he gave them ice cream, and Larry never did. However, after emerging from a bathroom, Patrick mistakenly looks for ice cream after SpongeBob says "ice cream" through a megaphone, crosses the tape after he sees the words on it as "DO NOT CROSS," when it really is "ICE CREAM," and goes into the water, where he gets cramps and starts drowning. When other fish get alerted to this, SpongeBob initially refuses to believe that someone is drowning, but he eventually sees Patrick and tries to find a way to save him without going in the water. He reaches Patrick using a boatmobile he "borrowed" from the parking lot, but Patrick destroys it and they both start drowning. Larry then comes back and "saves" them from the ankle deep water. Larry asks if SpongeBob is a real lifeguard, to which SpongeBob replies "No." At the end of the episode, Larry is seen teaching the two how to swim, and they both get butt cramps, and Patrick still doesn't have his ice cream, much to his dismay.
Even though SpongeBob and Patrick live underwater, this episode, ironically, shows that they cannot swim.
This is the only time a sea monster has ever appeared in the series, besides the fish that can be interpreted as sea monsters in "Rock Bottom."
Improper Grammer: SpongeBob said "Ladies and gentlemen of the lagoon is closed."
In the 2012 commerical for General Mills breakfest cereals, a clip of SpongeBob sucking up all of the water is used to advertise their SpongeBob squirters in specially marked boxes of brands.
In the later episode "A Life in a Day," Larry is shown as a lifeguard again.
The title card design shares the appearance of the title card design for the later episode "Shellback Shenanigans."
Interestingly, while at the beginning, SpongeBob was shown struggling with a barbell made of two soda cups, yet later, he was shown capable of lifting an entire boat and holding it up with one hand.
When Larry kicked Mable & Dennis out, Dennis said "Just like we raised him."
Thus that means that they could possibly be his parents.
Both of Larry's possible parents are fish, although Larry is a lobster.
This may mean Larry was adopted.
The Sea Monster in the episode was voiced by Dee Bradley Baker.
In the Middle East airing, the scene where SpongeBob & Patrick check on their "tan" is removed.
When Larry lifts the board with fish on it, two of them fell off of their faces first.
The old man who Larry tells to leave (and who is implied to be Larry's father) reappears in a later scene.
When SpongeBob raises his arms to call the people for ice cream, he never lowers his arms as he gives it to them.
After everyone at the Goo Lagoon go back into the water, two shark fins are swimming around a beachgoer despite the fact that the only sharks mentioned were an actual family of them, meaning that SpongeBob was right about there being sharks.
Although, it might have just been the shark family swimming like real sharks.
When the crowd is looking up at the lifeguard tower when SpongeBob calls everyone out, Annette doesn't have any hair.
It is not Evelyn, however, because in the next shot and for the rest of the episode, Annette has her hair back.
SpongeBob's nose changed color everytime Patrick hit him with the anchor.
When SpongeBob sees that Patrick is drowning, he breaks the lens of his binoculars.
After Patrick finishes shouting, it was back.
When Patrick comes out of the Port 'O Head, there is toilet paper on his shorts.
When he gets near the lagoon, it is gone.
In scene when Larry saves Bill, a crowd of fish are worried.
However, Bill was in the crowd.
When SpongeBob hands out ice cream, White Fish is shown with a pink ice cream.
In the next shot of him, the ice cream changed color to white.
When SpongeBob hands out ice cream, Nat Peterson is shown with a red popsicle.
In the next shot of him, the popsicle changed color to blue.
Nancy Suzy Fish is seen leaving with Larry for his tanning, but is again seen later sharing a hotdog with Gus.
Since Goo Lagoon is a lagoon, SpongeBob would not be able to drink all of the water in Goo Lagoon as more water from another body of water next to it would flow in.