SpongeBob is at the Krusty Krab, frying happily some Krabby Patties. Then, he says the order´s ready, and a grumpy Squidward grabs it and gives it to the customer. SpongeBob realizes that Squidward is in a bad mood (a running joke is that Squidward is always like that and SpongeBob behaves as if it´s the first time). When it was dan, Squidward left the Krusty Krab still in a bad mood. SpongeBob still wonders why Squidward is in a bad mood, and feels sad saying that he wishes to know how he can make Squidward happy. At nightime, SpongeBob walked alone in the street and went home. He sat on his couch, saying that he would like to help Squidward be happy. Then, he went to sleep. But then, he heard a strange bang outside his yard. He went and looked through his window, it was a spaceship! Terrified but confident, SpongeBob goes downstairs and opens the door to see, and the spaceship begins to open. SpongeBob immediately closes the door and hides right next to it. Suddenly, he starts to sweat, hearing some footsteps coming to his door. SpongeBob is frightened, but then, he hears the doorbell. He walks to it and opens it. He at first doesn´t see anybody, but when he looks down, he sees a strange lookin´ creature from space. SpongeBob lets out a scream and starts to back off, but the creature smiles at him and hugs him. SpongeBob took an instant liking that creature. He then invites him to have dinner, but the creature just spitted out the milk and ate the glass. SpongeBob tried to talk to him, but the creature couldn´t talk, then, he sees some initials on his chest, which said "E.T." SpongeBob teaches him how to talk. Then, SpongeBob tells E.T. about Squidward, and that he needs help. E.T. tells SpongeBob that he would be glad to help him, partially because he has to be here in the ocean to experiment ocean things, but more about squids and octupuses. That night, SpongeBob invites E.T. to sleep in his house, and E.T. agrees. The next day, SpongeBob sees Squidward coming out of his house to plant some plants. Then, SpongeBob tells E.T. to do the plan, and make Squidward happy ("O.k., Mr. E.T., you know the thing, you go right there, say hi to Squidward, hug him tightly, and also if it´s neccesarily, talk to him to make him feel better, Capish?" Capish!" says E.T.). E.T. walks toward Squidward, and says hi, but with a simple look at him, Squidward screams and runs inside. "Looks like we´ll need something better" says SpongeBob. Next, when SpongeBob was reading a therapy book, he saw that a therapist is the only person in the whole world to make you happy, so SpongeBob costumed E.T. as Dr. Kildare. E.T., costumed as Kildare, rings Squidward´s doorbell. Squidwards opens it and sees E.T. as Kildare who greets him gracefully ("How´s thing, Mr. Tentacles? Isn´t this a fresh day to talk about emotions and great time to relax and let it all out?") Squidward was not surprised, but still thought it was Kildare and invites him in. Inside, he gives "Kildare" a cup a glass of tea, and E.T. as Kildare asks him wha is his problem. Squidward answers him that living with SpongeBob and Patrick is his problem. E.T. leaves with the notes written down and tells this to SpongeBob. SpongeBob doesn´t trust this, and tries to find other ways to help Squidward be happy, with E.T.´s help. The following episode shows SpongeBob and E.T. doing lots of stunts to make Squidward happy, complete with putting flowers around Squidward´s coach. Other gags were singing at Squidward´s window to make Squiward happy, and doing a puppet show in his house, and this only made things worse. Squidward was getting stressed out and he couldn´t take it any longer, saying this was the worse day of his life, and dawn was comming. After seeing the list, SpongeBob said the only thing they had left was to make a dinner at Squidward´s house. SpongeBob told E.T. to put his smokin´, but after that, E.T. putted his hand on a vase, causing it to break and fall with a huge jar of cidar on top of E.T., causing E.T. to become drunk. SpongeBob, with his smokin´, was already in Squidward´s house sitting on the table waiting for E.T. and Squidward to come. Then, a drunken E. T. comes and sits down on the table and whistle for their "honor guest" to come, another running joke is that Squidward doesn´t even know SpongeBob and E.T. are dining in his house and are waiting for him, and is on his room, fast asleep. The drunken alien grows impatient, and despite SpongeBob´s warnings, he goes upstairs to get him. Inside the room, he grabs some gasoline and lits a candle, and throws the liquid and candle to Squidward in the bed. Squidward´s house collapses, and Squidward flies out in his half-burn bed screaming. Immediately, the police comes and surveys the scene. When Squidward lands on his half-bed fired, the police takes him for litting a candle with gasoline, not knowing it was the drunken E.T. They putted him in a wooden cage hanging in a tree with the police watching. Although this seemed the last straw, Squidward was more than happy, in no sorrow feeling thankful that he is now "rid of the lousy good-for-nothing idiotic sponge of SpongeBob, and that stupid terrifing alien! Rest and relaxation at last!" But when he turns around, he is shocked to see that he is sharing the same cage with SpongeBob and E.T.! Both eating a Krabby Patty and SpongeBob says "Hey! You too Squidward?! Great! Then we´ll be together sharing this cage, for the love and sake of this, we´ll spend a happy time! Isn´t that great?" Squidward throws himself to the ground and cries. SpongeBob turns to E.T. and says "You know, Mr., I think we did make him happy!" "You got that right, Mr. SquarePants!" says E.T. The cartoon closes with Squidward hitting his head while crying, and SpongeBob and E.T are eating happily. Then, the next day, they´re freed, but Squidward is more concentrated in crying. SpongeBob and E.T. look at each other and E.T. says "You know, Mr. SquarePants, we did actually roll it up!" Then, SpongeBob laughs, with E.T. imitating it and both walking away. Then, E.T. goes back to outer space, leaving SpongeBob relaxing in his house in a chair reading a book, and Squidward on his wrecke house still cryin.