After Mr. Krabs sees a child throwing a coin down a well, much to his horror, he learns about wishing wells, and creates The Eugene Krabs Memorial Wishing Well in hope of making money from it. SpongeBob and Squidward are tasked with digging the well, and SpongeBob does all the work, singing a song about the well's magic while doing so. After the well's completion, SpongeBob obtains a "promotion" in which he has to stay in the bottom of the well all day and night to collect coins that fall in.
After Sandy, Plankton and Mrs. Puff throw coins into the well and make their wishes, Patrick arrives and throws his soda cup into the well, thinking it was a trash can. SpongeBob tries to explain to him that it is a wishing well, and Patrick mistakes the voice as coming from the "trash can." He wishes that SpongeBob was here to see the magic trash can with him, and when he tries to throw his coin into the well, he falls inside and meets SpongeBob at the bottom. That night, Mr. Krabs arrives to collect the money, and SpongeBob asks him if any of the wishes have come true yet. Mr. Krabs falsely says that if they "believe hard enough" and "dig deep enough," the wishes will come true.
The two buddies take this literally, and begin to dig the well deeper. Eventually, SpongeBob finds a glowing crack on the ground and claims that he has "found the magic." Squidward later comes to the well to tell them how good it feels that they are not able to bother him. SpongeBob tells him that they found the magic, and Squidward, laughing at them, explains that there is no magic and that wishing wells are nothing more than a scam. SpongeBob wishes that he could see the magic for himself, and Squidward falls into the well. SpongeBob and Patrick's antics continue to torment him as he desperately tries to escape. The next day, Mr. Krabs arrives to check on the well as Squidward finally climbs out, with SpongeBob and Patrick following.
Squidward wishes to get as far away from the well as possible, and is subsequently hit by and stuck to the front of a bus going to "far away." Mr. Krabs asks SpongeBob how much money they made, and SpongeBob explains that they made no money, but found the magic. Mr. Krabs then tries to explain to him that there is no such thing as magic, but then sees that the wishes of Sandy, Mrs. Puff and Plankton have all come true. The skeptical Mr. Krabs still does not believe in magic, and tries to prove that magic does not exist by wishing to be "steamed and served with a side of melted butter."
His wish is granted, and a live-action human with a bib reading "THE END" prepares to eat Mr. Krabs in his meal as Mr. Krabs says no.
Animation in progress error =
The original airing had "All That Glitters" at the beginning and it ended with SpongeBob at the therapist's office before it cut to him said "You can't rush perfection." The rest of episode plays as normally. To prevent duplication in reruns, it was replaced with the new opening credits and the first part of the episode.
Squidward states that he is claustrophobic. However, he had no difficulty inside a box in "Idiot Box" or a very small treehouse in "Club SpongeBob."
Although, he may have developed claustrophobia after these episodes which means this episode would take place after those episodes.
Another possibility is that Squidward may have just wanted some personal space, since Patrick was crowding him.
Patrick's drink, which he threw away in the well, disappears after he falls in.
Squidward got his wish to be far away, even though he didn't throw a penny into the well.
When Patrick is sitting on Squidward, Squidward's shirt is gone.
When Mr. Krabs collects the money and SpongeBob loads the bucket, he loads only two coins when there were four to collect. Also, SpongeBob claims he got two pennies from Mrs. Puff, while she threw only one coin down the well. SpongeBob also did not put the "slightly used pair of dentures" that Patrick was wearing into the bucket.
Patrick's "ribs" disappear in the scene after. He also says Squidward is stepping in his potato salad, but no potato salad is shown.
When SpongeBob says to Patrick and Squidward, "You can't fight in here! This is a magical place!", it's a reference to the quote, "Gentlemen, you can't fight here! This is the War Office!" from the film, Dr. Strangelove.
When Patrick throws the coin, the well is big enough for him to fall in. But when he reaches the bottom, it is big enough for SpongeBob, Patrick, and Squidward.
Squidward points out that all he could smell is the dumpster. After a couple scenes, the dumpster is gone.
When SpongeBob says that he believes in magic, his legs disappear.
SpongeBob puts in a sign that says "Open" beside the well. But two scenes later, it disappears.
Patrick is just as big, if not bigger than Mr. Krabs. Yet he was able to fit inside the well, but Mr. Krabs couldn't. It is possible that the Eugene Krabs Memorial Wishing Well is bigger than the well seen at the beginning.