Mitch Buchannon has just been promoted to lieutenant. Mitch and his ex-wife Gayle have an argument about what's best for their son Hobie. Eddie Kramer is the top rookie in the rookie class of ´89, and Shauni McClain is one of the last ones to qualify. Shauni starts off as a terrible lifeguard, but the experienced Jill Riley teaches her how to become a good lifeguard.
In order to cheer Hobie up, Mitch and his old lifeguard friend Al Gibson, takes Hobie on a fishing trip. Then something happens and the boat sinks below the surface. Mitch and Al have to rescue the people on the boat. Disaster strike during the final rescue when Al gets trapped inside the wreck and dies. Baywatch arranges a funeral at sea for Al, with Mitch holding a speech.
Meanwhile, Craig Pomeroy rescues a girl named Laurie. She is crazy and tells Gina at a party that she and Craig has had sex together. Then Laurie tries to kill Gina under a pier. But Craig comes to her rescue just in time.
Trevor Cole from Australia works as a lifeguard at the local beach club. Trevor thinks that he's the best and Mitch immediately dislikes him. Even though Mitch doesn't like him, he tries to imitate him by climbing up a pipe using just arms and legs.