Love, Pokémon Style!

Plot
The day after the opening ceremonies, at the Athlete's Village Pokémon Center, Ash discovers that he has been grouped into Group H. Brock further explains that the semi-final round is a round-robin tournament, where each Trainer battles the two others—with three points for a win, one for a draw, and none for a loss. The Trainer with the most points in the group stage will move on to the Victory Tournament. Ash is confused by the details, but hopes to win anyways.

Heading back out, they come across Ash's first opponent, a young girl named Macy. The two help each other get fired up, nearly getting into a battle in doing so, but just as it begins, Pikachu and Macy's Vulpix are snagged by Team Rocket in nets. As the Rocket trio makes their getaway on a tandem bike, Ash and Macy pursue them downhill. Macy soon trips and falls over, though Ash manages to break her fall. He tells Macy to leave recovering the Pokémon up to him, Macy is immediately smitten for Ash. Meanwhile, Ash cuts off Team Rocket, and has Bayleef recover the stolen Pokémon and send Team Rocket flying with Vine Whip.

As Macy expresses her feelings for Ash, both for saving Vulpix and being smitten by Ash in general. Macy invites out for lunch, but Misty breaks her off. The two get into an argument, with Misty's preference for Water types and Macy's affinity for Fire Pokémon becoming fuel for their argument. Macy asks Misty if she is Ash's girlfriend, though Misty backs off and replies that she is only his coach. Macy then tells Misty to get herself out of Ash's personal life, as Macy believes that she has a romantic future ahead with Ash. As Macy and Misty are arguing, Ash runs off, about to prepare for battle. Macy waves Ash off, telling him to take her out on a date after their match should she win. Though this only fuels Misty's jealousy even more.

That night, Ash assembles his party of Pokémon for his upcoming matches, receiving some from Professor Oak's Laboratory. Brock attempts to seduce Nurse Joy only to be dragged off by Misty by the ear once again. Ash decides to make up his team for the match right away, only to be quickly rebuffed by Brock and Misty. Back in their room, they check the system for information on Macy, and they discover that she has Vulpix, Slugma, and Quilava—all Fire Pokémon. Misty is adamant that Ash will load up on Water Pokémon, but Ash reminds her that he only has two—Totodile and Kingler. On his third entrant for the three-on-three battle, Brock makes an interesting discovery about Macy, and the three ponder who should be chosen. Later that night, Brock finalizes Ash's entries.

The next day, Team Rocket opens a small concession stand, selling painted bottle caps made to look like Silver Conference souvenirs. Meanwhile, Ash calls out Kingler for some warm-ups just as three Voltorb are rolling down a hill towards them. Kingler catches them, but the Voltorb shock it, knocking it out. They retreat to the Pokémon Center, and Nurse Joy declares that Kingler will need a full day to recover. Missing one entry, Ash contemplates his next move, while Misty hopes that Totodile will hold up against Macy. Just then, Officer Jenny shows up in her police bike, with Squirtle in tow. As Ash and Squirtle exchange pleasantries, Officer Jenny explains that Squirtle was motivated to make itself available after seeing Ash in the torch relay, and that it took some time off from the Squirtle Squad just for the occasion. Squirtle has no problems being a last-minute addition to the upcoming match, and they hurry off to make a last-minute entry change.

At the B-Stadium, the match begins, with Macy having the first move. Macy sends out Slugma, while Ash responds with Totodile. The battle begins with an exchange of Flamethrower and Water Gun. Macy changes tact, anticipating that a Water Pokémon would be sent out, tells Slugma to use Double Team to evade Totodile's attacks. It works for a moment, and Slugma hits Totodile with a Flamethrower. Macy orders another round of Double Team, but Totodile manages to hit Slugma with a Water Gun. At this point, Macy recalls Slugma to its PokéBall for her surprise entrant, Electabuzz. Anticipating this, Ash pulls out Totodile for Phanpy. Misty congratulates Brock on his foresight in assisting Ash to make Phanpy his third entrant, and it pays off when Phanpy shakes off a Thunderbolt. With Electabuzz perfectly countered, Macy recalls it and sends Slugma back out. Ash leaves Phanpy in, and uses Earthquake and Rollout in quick succession. Slugma retaliates with another Flamethrower, but Phanpy blocks with Defense Curl. Phanpy also blocks Slugma's Body Slam, and uses another Earthquake on the recovery. One Take Down later, and Slugma is out for the count.

Quilava is sent in. As Misty comments on how any of Ash's entries will have the advantage against Quilava, Phanpy starts with a Rollout. However, it is countered with a Flame Wheel, followed by a Quick Attack. Phanpy's attempt at a Take Down is met with another Flame Wheel, knocking it out. Brock and Misty are surprised at the turn of events, believing that Phanpy could have gone for the sweep. Ash calls out Totodile once again, while Macy selects her Electabuzz for the upper hand. Totodile begins with a Water Gun, but Electabuzz blocks it off with Light Screen. Totodile's Headbutt manages to break through, however this allows Electabuzz to land a Thunder Punch, knocking it out.

Now down two Pokémon, Ash is forced to send out his Squirtle. As Macy prepares to strike Squirtle out with a Thunderbolt, Squirtle hits its mark with a Water Gun. Officer Jenny is watching from the sidelines and credits the firefighting training for Squirtle’s lightning fast maneuver. Macy is left startled for a moment, though she soon goes on the attack. Squirtle evades a series of Thunder Punches, and hits again with a Water Gun, which Electabuzz blocks with an Iron Tail. A second Iron Tail hits Squirtle, and Macy tries to finish it off with a Thunder Punch. However, Squirtle, out of the air, hits another Water Gun in the same spot as the first, interrupting the Thunder Punch. Electabuzz tries to finish Squirtle with another Thunderbolt, but it is met with a Skull Bash for its efforts and knocked out.

The match is now down to Quilava with Squirtle, with momentum back on Ash's side. Squirtle opens with a Water Gun, which Quilava counters with Flamethrower and Swift. Squirtle responds to the Swift with Bubble. The projectiles collide, creating a smoke cover for a Water Gun to hit Quilava. Another Bubble attack is met with a Quick Attack, which sends Squirtle reeling, with Squirtle ending up on its back. As Squirtle struggles to get back up, Quilava sees an opening and rushes in for a Flame Wheel. In a last minute move, Squirtle retreats into its shell and uses Hydro Pump, using the spinning attack to not only hit Quilava with the water, but also with its own body. Quilava is knocked out, and Ash wins the match. Macy walks over to Ash and congratulates him on the victory. Ash replies that the match helped him and Squirtle to reunite.

Meanwhile, Team Rocket has managed to sell all of their stock at their concession stand. Though Jessie and Meowth intend to spend their profits, James instead has a more ambitious idea, convincing the others to sell even more bottle caps. After the match, Brock tells Ash that he now has firm control of Group H with the win. Depending on the outcome of the second match, Ash could be in a situation in which he only needs a draw to advance. They are met again by Macy. She shows them her newly-evolved Magcargo. Hugging Magcargo, she tells Ash that it will always be a reminder of her love for Ash. Macy is still determined to advance through to the next round and she promptly leaves to prepare for her next match.

Major Events

 * Ash has all of the Pokémon he has been keeping at Professor Oak's Laboratory sent to him for the Silver Conference.
 * Ash's Kingler is injured in an accident and is unable to compete in the tournament.
 * Ash's Squirtle returns to his team from the Squirtle Squad.
 * Ash's Phanpy is revealed to know Earthquake.
 * Ash wins his first preliminary battle against Macy.