Wayne is busy trying to perfect his Hypolyptical Organic Oxide Ray (a.k.a. the Hoo-Ray), a device based on mood-ring technology that will cause people to be happy, thus ending war and boosting global self-esteem. Wayne's new foreign assistant, Vlad Bolvahnicz, cautions that changing nature isn't necessarily a good thing.While working late on the project, Vlad is visited by members of the Global League of Oppressed Madmen (GLOOM). Vlad is actually an anarchist too, and his job at Jentech is part of GLOOM's eco-terrorist plot to teach the industrialized, polluting Western hemisphere a lesson by destroying a key polluter city.

Ninjas invade Matheson, and Team Szalinski is in for much kung fu fighting to save the town. A monk, Master P'tui, appears to help Wayne and teach him martial arts. Meanwhile, Nick, tired of being bullied into doing other people's homework, invents a spray that can turn anyone into a kung fu expert. Also, Lord Bilious wants Diane to defend him after he tried to bribe town officials and landowners to sell him the town.

Crazy greedy Jennings bets his company even though he can't play golf very well. He asks Wayne to build golf clubs to help them win but Jennings gets hurt so Wayne has to play. Meanwhile Diane and the kids are feeling crowded with Wayne's invention so they decide to sell the stuff they don't use but after a while people don't like them so now they have to get them all back.