Julien's dream of opening a nightclub finally comes true, but the place is haunted by a masked phantom. Or could it be someone he knows making mischief?
Maurice is playing a piano and tells the audience to come closer, so he can tell a story about King Julien.
In the throne room, Julien is panicking that he doesn't have a legacy. Clover and Maurice say that Julien brought laughter and joy back to the kingdom, but Julien compares this legacy to that of a circus pony. Julien decides his legacy will help his people, so Maurice thinks he will build the hospital they need. However, Julien decides to make a nightclub called Club Moist. Clover asks how a club is supposed to help people. Julien responds that the club provides nutrition and exercise, and since Rob is all disfigured and gross, the idea reverts to Julien. Julien silences Maurice before he can speak against him.
Later in the club, Julien, Clover and Maurice are auditioning some lemurs, seeking talent. The three listen to Willie, Tammy and Todd, and Ted, but the three are not "moist" enough. The next to audition is Mort, who is singing about Julien's feet. The lemurs adore him. Julien cuts the music and hires Mort to be his big star, even renaming him Pork.
Maurice continues the story of Club Moist being popular and full of talent, but everyone enjoyed the signature act of Pork the most. However, Maurice warns the audience that is all about to change.
In his dressing room, Mort needs some space from his fans. While beautifying himself, a figure comes from the wall, referring to himself as the phantom of club moist, and kidnaps Mort.
In the club, Xixi tells Julien that Mort is missing. The group ponders who to put on stage since Mort is missing. Tammy declares that Todd is to be put on the stage after Pancho's act. Just as Todd begins doing his song and dance, he gets crushed by a rock. The rock was dropped by the "phantom", who warns everyone to never come to Club Moist again.
Maurice on the piano tells the audience that since the club was Julien's legacy, he won't close down the club.
Back at the club, while Todd is being taken to a doctor, Julien is mad that his stage has been ruined. Maurice asks if the phantom could be Rob seeking revenge, but Julien dismisses this, claiming Rob doesn't wear a mask. Xixi tells Julien that all reservations have been canceled. Julien sobs after hearing this, but since this is his legacy, he isn't going quit and walk away. Julien orders Xixi to spread the word that Club Moist is coming back, and tells Clover to make a trap for the phantom's return. Excited, Clover asks what to use as bait. Julien offers himself to be the live bait, and Clover starts to prepare her traps and Xixi starts hyping the crowd for Club Moist's reopening.
On the stage, Julien is preparing himself for his performance, while Maurice reminds him that making himself a target is a bad idea. Clover arrives and tells the two of all the traps she has implemented for the phantom. Xixi then comes in, saying the club is completely sold out for the night. Julien then tells everyone to get ready for the show, but in the background, the phantom is watching.
That night at the club, Xixi introduces King Julien to the crowd. While Julien is giving a speech to the crowd, Maurices questions if Clover's traps will work. Clover assures him that the only way the phantom can get past all her traps is if he's invisible. The lights then turn off and Clover's traps activate. When Clover turns the lights back on, she finds the traps attacked the crowd instead and Julien is missing.
Maurice on the piano tells the audience that that was the last of King Julien, before announcing he is only teasing.
In the aftermath, as the injured are being carried out, Maurice and Clover argue over the traps. Eventually, they start to cry about losing King Julien. In the distance, they hear cries for help. They investigate and find Mort. The two question Mort about where the phantom might be, and Mort tells them of the vague entrance the phantom described to him.
Julien wakes from unconsciousness to find himself strapped to a table. The phantom appears and reveals himself to be Rob. Rob, with the help of Dr. S, plans to switch his mind with Julien's so he has his youthful body. Dr. S activates the machine to switch the two minds. Just then, Clover, Maurice, and Mort arrive at the scene. Mort jumps on the machine, receiving a major electric shock from it. Maurice helps Julien up and questions what happened. Dr. S explains his procedure worked and that he switched the two minds. Julien comes to his senses, proving he is alright. Rob tries to escape but Clover uses Dr. S. to pull him back, capturing them both. Clover asks Julien what to do with the two. Julien tells her to let them go. Clover and Maurice ask why, and Julien explains that during the procedure, he felt Rob's pain and saw he was right. Julien does only think about himself. Julien then decides to close down Club Moist, and open up Club Moist the hospital with Dr. S as the first doctor and Rob as the first nurse. Rob and Julien then make amends.
Back with Maurice on the piano, he tells the audience how Julien got his legacy, and the kingdom got its first hospital. Maurice says this reminds him of a song, but before he starts to sing, Dr. S drops a rock on the piano, crushing it and saying the first rule of the hospital is no singing in the cave.