During a trip to Hawaii, Timmy wishes that his parents were the best surfers ever to impress a pretty hula girl, but that wish starts a wish limbo, in which they won't stop fighting until only one prevails as best surfer ever in Hawaii.
The Turners arrive in Hawaii for a vacation, and Mr. and Mrs. Turner are eager to start surfing. Surprisingly enough, they brought Timmy, even though he had to travel there in the airplane's cargo hold because his parents needed the third seat for their surfboards. Turns out, however, that they lost their skills due to having not surfed for a very long time. That's a problem for Timmy, because he wanted to go to a Luau where a beautiful Hawaiian girl he developed a crush on will be going to, but he won't be allowed to go to the luau because is only for skilled surfers families.
Timmy wishes his Mom and Dad were the best surfers in the world, and they suddenly become very skilled surfers. Everyone at the beach names Timmy the king of the beach for having cool parents, but then Jorgen arrives and tells him that his wish caused the "WISH LIMBO! Limbo... limbo...limbo..." That is because there cannot be two best surfers at the same time, so Mom and Dad will fight forever to see who is better. Timmy tells Jorgen that his parents will get tired sooner or later, so he just waits. They're refusing to eat, sleep, or shave their facial and leg hair till the other gives in, and even Timmy and his fairies grew facial hair for waiting such a long time. So Timmy asks Jorgen what can break the Wish Limbo.
The only thing to do is to find something more important to them other than surfing, so Timmy wished for a jet ski and to shave his facial hair. Then, in a jet ski, he tells his parents that if they stop surfing he will give them a flat screen TV, a diamond necklace, and a pony. His parents refuse the offer, so Timmy thinks of another idea, he wishes for a bay so dangerous they would rather stop and save their lives. Unfortunately, Timmy was wrong, his parents think that it is the perfect track to compete with each other. When a giant Kraken captures Timmy and his fairies, Mr. and Mrs. Turner change course to save Timmy and "some weird pink, green and purple sea creatures". So they shaved and pulled facial hair out of their skin and came to rescue Timmy.
The Wish Limbo ends because Timmy is more important to them than surfing. However, they are now they are captured by the Cracken, so Timmy wishes up a huge wave to scare the Cracken, and Poof turns into a surfboard and takes Timmy and his parents to the shore. That night at the luau, Mom and Dad play limbo together. While Timmy attempts to attract the hula girl, he says he'd "better get crackin' " since there was only one more day left of his stay in Hawaii, so Cosmo poofs up the Cracken which scares away everyone at the Luau and who mauls Cosmo into the ground, who remarks that he just made a "pu pu platter".