In King Julien's throne room, Masikura foresees the island sinking into the ocean, with all the citizens in peril, and it's happening as soon as tomorrow morning. King Julien is worried about this, and he struggles to figure out how to break the news to the easily excitable kingdom. King Julien asks Maurice to tell them as he comes up with a way to try and stop the island from sinking. Though he thought that he would handle it, he created mayhem. He asks Clover and Maurice to find Captain Booty Butt so he can sleep well otherwise he won't be able to set up a new kingdom since he will have tired bags under the royal eyes.
King Julien tries various methods, including burning down all the trees, loosing their weight and sacrificing someone to Judy, the goddess of the ocean. None of these work, so Julien has Timo construct an ark. Unfortunately, while the King wanted a giant ark capable of fitting everyone in the lemur kingdom on it, Timo is only able to build an ark that can hold 5 lemurs due to the lack of budget, manpower and materials. This leads to a struggle for who gets on the boat and who doesn't. King Julien even consults Masikura, but she says no one will.
Meanwhile, Clover and Maurice try searching for Captain Booty Butt, King Julien's favorite stuffed toy. However, unbeknownst to him, the toy was stolen years ago. Clover manages to trace it back to Karl. Clover and Maurice then interrogate Karl who admits that he stole it to try and overthrow King Julien with an army of stuffed toys. Karl ended up having to sell the toy to Tammy so he can reimburse his family for the damages to their coffee plantation. Clover and Maurice head over to Tammy's hut, but she refuses to surrender the toy to them. Clover and Tammy get into a fight as Maurice tries to get the toy, but is attacked by Todd. Clover eventually subdues Tammy who allows them to take the toy.
Later that night, King Julien sings about how much he loves his kingdom and shows his care to his kingdom, and at the end, sees that some of the lemurs are trying to steal the boat. They break into a fight until Mort breaks it up by firing a cannon. After King Julien lectures them, he decrees that the women and children will be the ones sailing off the island, which everyone agrees is a good idea. This plan is ruined though, as Horst steals the boat and subsequently crashes it into a rock. The lemurs accept their fate, and patiently wait for the sunrise. Clover and Maurice return with Captain Booty Butt, making Julien happy. The sun rises, and by the time it's noon, the island hasn't sunk, confusing the lemurs. Masikura also wonders why she was wrong, until the island starts vibrating. Ted points to the other island, where a volcano erupts and sends the island underwater as its inhabitants scream in horror. Masikura confides in how she was right about some island sinking, it just wasn't Madagascar. King Julien is relieved that his kingdom isn't going to be destroyed after all, and throws a party to celebrate.
At the end of the episode, Mort collects insurance from Butterfish for the destruction of his stump, which was his own doing. He claims the insurance stating that his oven explodedbut it is he who put a giant rock to crush his house (And his fruit friends who were having a drink). The episodes ends comically and he laughs devilishly.