After failing to steal the Krabby Patty secret formula once again, Plankton decides that he is tired of eating "holographic meatloaf." Believing Mr. Krabs to be much better off, he longs to switch lives with him. Karen points out the machine he conveniently has to do just that and suggests he uses it. Plankton takes her advice and later finds himself waking up in Mr. Krabs' office. Now wearing Mr. Krabs' outfit, Plankton looks at a name plate reading "Mr. Plankton" and realizes that he has successfully entered a universe where he is, in fact, successful. His first act is to have SpongeBob, now his employee, present him with two Krabby Patties for "bun inspection."
As Plankton drools over the Krabby Patties and celebrates his newfound power and wealth, SpongeBob suddenly pops back in for his weekly performance review. Plankton tells him that he's fine the way he is, but SpongeBob persists and demands that something be found wrong with him. Plankton dismissively remarks that SpongeBob used a little too much sauce, but rather than placating him, this critique sends SpongeBob spiraling into despair. Plankton resorts to promoting SpongeBob to "co-cashier," much to the disdain of the former's other new employee, Squidward. He enters Plankton's office to complain and winds up as SpongeBob's fry-cooking replacement.
Before Plankton can get back to his Krabby Patties, his new daughter, Pearl, arrives, asking for an advance on her allowance. He gives her a dollar, which she finds unacceptably paltry. As she sobs, a customer comes to complain about Squidward's horrific attempt at cooking while SpongeBob dissolves over a slightly mistaken order. Plankton begs for all the complaining to stop, which does in the face of a siren going off.
The siren, as SpongeBob and the others explain, is a warning for an imminent threat to the Krabby Patty formula, a threat that turns out to be Mr. Krabs. Having taken over Plankton's life, he is now simply known as "Krabs," out to steal the formula, and, like Plankton used to be, completely naked. SpongeBob fights Krabs off with a clothes-shooting cannon and finally manages to clap him in an underwired bra. Krabs relinquishes his stolen patty to a baffled Plankton as everyone at the Krusty Krab gives a shrill "victory screech."
Krabs vows to Plankton that he will manage to steal a Krabby Patty, even if he has to return day after day after day to do it. Plankton shrieks, unable to stand this new life and its problems any longer, and presses a button to send himself home. Plankton is transported directly in front of his holographic meatloaf, which he has a newfound appetite for and scoops up eagerly.
This episode reveals that "Plankton" is Plankton's last name, not his actual name.
This is one of the few episodes where Plankton actually succeeds in one of his evil plans, though he quickly decides to abandon it once he realizes that living Mr. Krabs' life would be too difficult for him.
In the Croatian dub, the episode name is "Kod Drugoga je Uvijek Bolje" or "It's always better at the other one."
When Plankton says "Reunited, and it's going to feel so good!," it's a reference to the Peaches And Herb song "Reunited." It can also be a reference to "it feels so good to reunite," a quote from Creed's 2001 hit "My Sacrifice," which was released several months before this episode aired.
When Mr. Plankton says "What, did I say the secret word or something?," it is a reference to Pee-Wee's Playhouse.
The title "The Algae's Always Greener" is a pun of the saying "the grass is always greener," which refers to the way we tend to look at other people's lives and other things that we don't have in general.
When Plankton says "Rolling stones gather no algae.," it is a parody of the saying "Rolling pebbles gather no moss."
When SpongeBob is shooting Krabs with the clothes cannon, he references a rule common in the restaurant business: "no shirt, no shoes, no service."
When SpongeBob says "Knick-knack, the Patty's back!," it is most likely a reference to "knick-knack paddywhack" in the song "This Old Man."
When Plankton is sitting at his kitchen table and he has a can of soda on the table, between frames, the can shifts to the edge of the table right before he picks it up.
When Plankton says, "I thought I told you to go away, cretin!". Closed captions misspelled the insult as "Cretan". Plus, it was capitalized.
When Plankton says, "I'm in the Krusty Krab," Tom walks by the window. When Plankton says, "The Krusty Krab is mine!," Tom walks by the window again.
When Plankton is kicked out, the pathway to the Krusty Krab is gone and the pathway to the Chum Bucket is shorter than usual.
When Krabs is leaving the Krusty Krab, some of the frames of his walk contain the legs of Mr. Krabs' pants.
When SpongeBob gives Plankton the phone, his belt lock is red instead of yellow.
When SpongeBob is doing the "victory screech", the cannon is missing.