When Flipper warns of a coming tidal wave, and it fails to materialize, local residents turn against Porter Ricks for spreading false rumors that have caused the entire coast to prepare for disaster.
An industrial spy takes a sonar device from Ulla that has been entrusted to her by an electronics company for field testing her submarine.
Bud is isolated on a buoy encircled by sharks as Flipper, suffering from amnesia, displays indifference for his friend's plight.
Bud's ambitions to become a business tycoon result in misfortune for his young pals who he commissions to work on his various projects.
