Before the episode has even begun, the viewer has a chance to read notes on the titular objects. Written by Lemonee Wee, the notes explain how waterlollies are formed by large musical storms and resemble a small clear sphere with water contained within. When a waterlollie is shocked, it rapidly inflates up to 9 times it's original size. The skin of the object is then thin enough to pierce and drink the water, which is said to taste like nectar and cure any pains the drinker may have. Waterlollies are also useful for aiding in the growth of plant seedlings.
The actual episode begins with Bitey stealing a nest of small gnat like creatures and then fleeing through the forest with it in hand. The gnats angrily pursue him until he gets away and loses them temporarily. Bitey breaks into the nest to eat the liquid contained inside and then throws the nest absentmindedly away. The nest hits an angry Bigfoot who tries to chase Bitey, but is too slow and Bitey manages to escape.
Bitey runs by a lake where the Auld Sage is collecting waterlollies from the water. Bitey grabs the basket of the objects and subsequently eats them whole. The Auld Sage is horrified and throws a waterlollie on the ground, causing it to inflate. Bitey then realises that one false move could kill him and he is forced to slow down to a walk to avoid shocking the waterlollies. He enters the forest and sees creatures he has caused trouble in the past surrounding him, including the Prowlies and the Bigfoot. Bitey manages to crawl away and find shelter under a rock, just as the gnats he irritated before fly over. He is about to rest when he looks above him and sees a massive bunch of spiders. His sudden outcry causes the gnats to find him again and he retreats to the water nearby to escape. Bitey swims to the other side and loses them. He crawls away on the grass again, taking care not to impact his bloated stomach in any way.
Bitey finds a hollowed out tree to rest in but notices a creature making a nest inside. Bitey kicks the creature out into the hands of the Bigfoot he hit earlier. The angered Bigfoot proceeds to stick him to the tree by his horns, the sudden impact causing Bitey to hurl up the waterlollies one by one.