Sean rescues a local TV celebrity who is in trouble with his kayak. This brings the team a lot of media attention, and because Sean turns down the offer of a TV interview, he is offered a week at the Hilton Hotel. Sean, though, does not like to take freebies either so he declines. But Zack gets an idea of his own: he will take advantage of the freebie vacation Sean was offered at the Hilton Hawaiian Village by pretending to be Sean!
Sean, Jason, and Zack travel to the Big Island to participate in the Showdown 2001, a 12-mile course of natural obstacles. Leigh will be taking over supervisory duties at Baywatch while Sean is away. J.D. is tending to Kekoa, who has come down with the flu. Fortunately, J.D. has an iron constitution, despite the fact that he didn't have his annual flu shot.
Sean and Leigh land in mortal danger after they rescue two surfers off a reef at Maui where one falls ill, and Sean becomes suspicious to the cause which may be connected to the reef. During their investigation of a local company, they end up as captives by the corrupt department head to cover up them using toxic chemicals to create a man-made reef.
Sean, J.D. and Kekoa travel to the Big Island to help with the extra work caused by the Ironman Triathlon. They soon have a run-in with former lifeguard Jessie Owens, who is also competing in the Triathlon and has new infant son with her. This causes some awkwardness in J.D., and slight jealousy in Kekoa who suspects that J.D. never got over her.
A bad week begins once again for Sean when two frivolous lawsuits, one by Kekoa's father over nearly drowning at the beach, and another by an equally wealthy man thinking that he lost his gold Rolex wristwatch. The local city council, now with Jenna on the staff, seeks another chance to try to close down the training center, in which an attractive special investigator, named Jackie Love, arrives to check up on Sean's work.
Sean deals with a series of prank phone calls for non-existent rescues and discover that McKenna's son is one of those responsible in which Jenna uses this to try to heat up the war between McKenna and Sean into a lawsuit hoping McKenna will finally close down the Baywatch Training Center. Zack deals with a slight hearing loss in one of the rescues while dealing with Jenna trying to get his help to bring down McKenna, while Zack is showing around Peggy, a prospective new trainee.
After Danny gets into trouble again with the law, Sean gives him a choice of being arrested or joining the training center team. Danny reluctantly joins the rookie team, much to Leigh chagrin who openly admits that she does not trust Danny, while Jenna continues her mind games by trying to recruit Leigh under her wing.
Sean has his hands full in dealing with Jena who wants to close down the training center to make room for a group of crooked investors looking to turn the Oahu North Shore into a hotel chain. So, Leigh tries getting Erica, a British entrepreneur to be the Baywatch Hawaii sponsor in order to keep the training center open, but with complications whom she makes advances to Sean.
During the training sessions for new Baywatch Hawaii lifeguards, Sean deals with Jena and other Hawaiian officials who don't see the training center as a profit making enterprise. During a drive, Sean accidentally hits into Zack McEwen, a new recruit and surfer from Michigan who joins the training team while Jason becomes acquainted with Carrie Sharp, one of the rookies from San Diego who finds him irresistible.