Betty Boop is at the beach, and prepares to enter the water with her rubber horse. Fearless Fred serves as the lifeguard. He warns her not to go too far in the water, as she is unable to swim. Betty briefly has fun in the water, but then the rubber horse deflates. She is trapped at sea. Fred comes to her rescue, though the cold water is troubling him. A half-drowned Betty begins hallucinating that she is a mermaid. Her fantasy world seems harmless enough, until she starts being chased by a sea monster. A prolonged chase ends with Betty the mermaid captured. But then she wakes up to find herself safe in Fred's arms. He has transported her back to the beach.
—Dimos I