The episode begins with the Moon asking the viewer to join him in his observation of dreams of Elmore's citizens.
First we observe Gumball's dream. Gumball dreams that he is falling back to his house from outer space, on the way hitting several objects until he eventually hits the roof on his house.
Next the viewer observes Mr. Small's dream. Although he expresses his fascination with dreams, he ends up having a nightmare where he is stuck in a confined space. The next dreamer is Banana Joe, who is having a dream that he is trying to catch his rear end. Then he splits into two bananas the one that has two faces on it and the other one has no faces on it and he catches the one that has no faces's rear end and then it revealed Banana Joe was split in half.
The next dreamer is Nicole. In her dream, she is relaxing on a beach. Unfortunately, her dream is disturbed by Richard's loud snoring and when he rolls over on top of her. At the same time, Richard dreams that he is a bun.
Then we see Darwin's dream, who simply dreams that he's sleeping in a bigger fishbowl.
Next we observe Larry's dream. He has several dreams with one dream inside each one until he is awoken by Doughnut Sheriff. However, Larry is under the impression that he is still dreaming and starts behaving bizarrely, disrespecting the police in the process which lands him in jail.
Next we observe the dreams of several of Gumball's classmates. Beginning with Hector, who dreams that he is no longer colossal. Overjoyed, he starts doing all sorts of things he never could due to his massive size. While he's dreaming, however, he sleepwalks and inadvertently wrecks havoc on Elmore.
Then we cut to Carrie's dream, who is having a nightmare that she is stuck in a colorful land of joy. At the same time, Teri is also having a nightmare where she is naked at school.
Back at the Wattersons house, we observe what appears to be Anais' dream. However, in that dream Daisy the Donkey is alive and Anais is her doll. Daisy sadistically tortures Anais. However, it is revealed that this was actually Daisy's dream.
Next is Juke's dream, where he was able to talk again, but when he talks to Gumball and Darwin, the nightmare begins when Gumball uses his mouth as a trumpet and Darwin using his teeth like piano keys. Then more of Juke's friends act like musical instruments, and Juke screams in terror.
We next see the Robinsons' dreams, which begins with Margaret reclining on a lawn chair and reading a newspaper, and Gaylord blowing leaves with a leafblower. Gaylord starts to annoy Margaret with his leafblower, who retaliates by throwing a lawn gnome at him. This escalates into a full-on fight.
We then see Sussie's dream. The dream begins breaking the fourth wall with the sound of 'Gumball' production staff finishing up recording a scene featuring Sussie, and she is revealed to be Aurelie Charbonnier's chin (who does her motion capture in the show). Sussie panics, thinking she's a monster, and flees offscreen in terror as the other staff watch in confusion.
The last dream is Alan's, which is actually quite disturbing and scary but it does not seem to bother him at all as he hums happily in his sleep.
The Moon then brings the episode to a close, facing some complaints from the citizens in the meantime, and then disappears at daybreak. The citizens wake up from their alarm clocks, ending the episode.
[The sky fades to night time and the moon comes up.]
Moon: [Narrating] When darkness falls across the town, the people start to settle down. And in the bed, they gently drift, unless they're on the nighttime shift. When everyone has hit the sack, and Richard eaten his nighttime snack. Unless, when everything is tired and bleary, they spoon together snug but weary. Off they drift to a distant place. Not bound by rules of time and space. A place of wonder, of sounds and sights, a place of joy of fear or frights. So join me now and we'll explore the dreams of those down in Elmore.
[Camera fades into Gumball's bedroom right in front of his face]
Gumball: [gasps] Darwin, do you sometimes get that weird feeling like you're falling when you're going to sleep-[camera zooms out, revealing that Gumball is in his bunk bed in outer space, falling down]
Gumball: [Screams] Oh, wait a minute. This is a dream. Nothing bad can happen. I'll simply wake up before I hit the ground.
[As he falls down, he hits a satellite, an airplane, Mrs. Jötunheim, Hector, the Chanax inc building, a suspended window cleaning ledge and then his own roof.]
Gumball: [Beaten up] Uhn...finally. [As he is about to hit the ground, he wakes up in alarm but bumps his head on the top bunk, accidentally knocking himself out.]
Mr. Small's dream
Mister Small: Ahh, the land of slumber. A magic world where one can fly or breath under water. A place where rainbows flow like rivers and animals dance on clouds. A place with no limits. Where, oh where, shall my wonders imagination take me this time.
[Falls asleep, and wakes up in his dream in small squished house. Mr. Small is about to scream but screams really quietly.]
Banana Joe's dream
[We see Banana Joe sleeping on his bed, then he quietly barks. In his dream, it looks like he wants to bite the end of himself, but splits himself in half instead. Then both pieces of the banana regrow again and start to chase each other. Banana Joe wakes up biting himself then screams.]
[Cut to Nicole and Richard's bedroom. Camera zooms in on Nicole and fade into her dream. In her dream, she is on a beach, sitting on a deck chair wearing a white sundress and holding a coconut-cup]
Nicole: Mmmm...[yelps as the ground shakes]
[We cut back to the bedroom where it's revealed that the earthquake was caused by Richard's snoring. Nicole is still asleep but looks annoyed. We then cut back to Nicole's dream where she tries to resume her relaxation]
Nicole: Aah!...ngh...AAAH!! [A burst of wind suddenly blows away the deck chair and almost blows Nicole away, who manages to stick to the ground with her hands until she is blown away seconds later]
[We cut back to the bedroom where we see that the wind was also caused by Richard's snoring right in front of her face. Then resume Nicole's dream, standing a bit shocked on the ground]
Nicole: Whoah...Aaah! [The ground moves into a vertical position, causing Nicole to fall back until the ground is horizontal again. Just as she gets back on her feet, a large tsunami washes her to the sea]
[We cut back to the bedroom, where Richard has rolled over on top of his wife who is suffocating under him. Then we move on to the next dream]
[Pixie dust transition to Richard's dream]
Richard: I'm a bun,
I'm a bun,
I'm a tasty, tasty bun!
To be baked and kneaded, oh, how fun!
You can have me with breakfast,
have me with brunch,
you can have me with your dinner,
you can have me with your lunch!
I'm a bun,
I'm a bun,
I'm a tasty, tasty bun!
To be baked and to be kneaded, oh, how fun!
[We see Darwin sleeping in his fish bowl, then he just dreams that his bowl is bigger.]
[We see Larry sleeping on the counter of his work, then he wakes up and sees Richard singing "I'm a bun!" Richard then explodes causing Larry to wake up again.]
Larry: No dozing on the job Needlemeyer, business doesn't sleep. [Wakes up somewhere.] Not a very convenient location for a convenient store.
Old Larry: Larry... You have wasted your life...
[Wakes up again, but sees himself naked and screams. Wakes up for the second time but sees his mouthed stitched together so it sounds like a muffled scream. Wakes up for the third time, in his bedroom.]
Larry: Ahh! I overslept! Wait! I don't get to sleep!
[Blinks with his right eye but it's actually Doughnut cop snapping at his face to wake him up.]
Doughnut Sheriff: Hey Larry! Wake up! So, like I said "One grande cappuccino but with the milk, the coffee, the foam, and the cup on the side."
Larry: Wait, what?
Doughnut Sheriff: Three doughnuts with extra cheese and four hot dogs without the skin on them.
Larry: Uh, okay? [starts to peel the skin off the hot dog.] Wait a minute, this is another dream isn't it? One where I get tortured by stupid customers with insane demands! Well guess what Mister, this is my dream and I could do what I want in it!
[Larry takes Doughnut Sheriff's hat, and puts it on himself while making chicken noises. Then pats his butt, making more weird noises. Looks at Doughnut Cop and slaps him, rubs his body against him while making purring noises. Then he jumps through his hole, and comes in and out of it mocking a bird clock. Larry kisses him and starts to lick him but scene cuts to him being in a jail cell screaming.]
Larry: Okay... I'll probably wake up soon... In three, two, one... Uh, what? No pixiedust? Oh, gosh...
[Cut to the outside Hector Jötunheim's cave, then fade inside to see Hector sound asleep, then see that he dreams about being as tall as everyone else in Elmore]
Hector: [snoring, then wakes up] Huh? Yeah! [Shakes Gary the mailman excitedly] I'm not a giant anymore! I can do everything that regular people can do! Whoo-Hoo! [Humming while dancing happily] I just danced and I didn't destroy the whole neighborhood! Whoo-Hoo! [Skips merrily down the street] I can hug people with hospitalizing them! [Hugs Cupcake Woman, then heads to the bus stop, and gasps] I can take the bus! [Sits at the back of the school bus while everyone stairs at him awkwardly] Whoo-Hoo! This is so slow! [The bus arrives at school, Hector leaps out the bus and resumes his dance] I can sit a classroom like everyone else! But this is a dream and I'm not gonna waste it on studying! [Hector is inside the mall, holding shopping bags and wearing clothes] I can buy clothes instead of pretending I'm not naked and just hoping nobody looks up! [Hector's sitting in a bathroom stall, happily kicking his legs] I can use a toilet instead of a volcano! [Sits next to Sarah on park bench and softly says] Sarah, can I--? [Then kisses Sarah on her cheek]
Sarah: [flattered giggles]
Hector: I can have a girlfriend! Whoo-Hoo!
[Hector's dream deteriorates to reveal that he is dancing all over the Elmore in his sleep, while the citizens below panic, helicopters are circling him, he laughs in his sleep, and he falls flat on his back, then we move on to the next dream.]
[Scene changes to Carrie sleeping in her bed sweating and moving around. Her dream is where she is magical land all bright and colorful singing.]
[Teri is sleeping in her bed, and in her dream she is walking down the hallway in her school, but notices she is naked.]
Teri: Oh my gosh, I'm naked at school!
[Shows Teri's body pixelated and covers herself. The bell rings and everyone gets out of class. Teri opens lockers but everyone goes to their lockers and she runs away. She goes under a door but the teachers are having a meeting, she quickly turns sideways. She keeps running and see Gumball and Darwin, she quickly crumples up and throws herself away. She opens a locker and finds a pencil to draw herself.]
Teri: Yes! [Tries drawing herself] Why isn't it working?
[Scene changes back to her bedroom, while Teri draws on herself while sleeping.]
[Anais is in her bed hugging Daisy. We then go into the dream where Daisy is alive and Anais is a doll. Daisy seems to be feeding Anais, with creepy music playing in the background.]
Daisy: Here, would you like some more Anais? [Keeps feeding her with the spoon but gets food all over her.] Oh look at you, you're all dirty! It's bath time! [Daisy puts Anais under water in the bathtub] Still dirty. [does it again] Let's play a little more. [blow dries her with a blow dryer, plays with another toy pulling the Anais doll. Then Anais is attached to the car, and is being dragged on the road. She gets dumped in mud, a tennis ball hits her, she rips, and then Daisy hugs her.]
Daisy: [whispering] You're my best friend Anais. Do you like me too? [pulls the string on Anais]
Anais doll: Please, end this.
Daisy: Never. [hugs her]
[Scene cuts back to the bedroom and Daisy is alive]
Daisy: That was my dream.
[Cut to Juke's bedroom. Camera zooms in and fades into his dream where he is on the school playground sitting on a bench. Carmen walks by]
Juke: Hey, Carmen. What's up? [Gasps] I can talk! I can communicate again!
[Camera zooms out, revealing Gumball and Darwin standing next to him]
Juke: Guys, guys! Let's have a conversation right now!
Gumball: [Makes trumpet noises]
Darwin: [Makes piano noises]
[Tobias walks in banging on his head, making bongo sounds]
Juke: No! That's not fair!
[Camera zooms further out, revealing several students including Carrie, Masami, Carmen, Leslie and Molly. All communicating via instrumental sounds]
The Robinson's Dreams
[The camera cuts to the Robinsons sleeping. Then, In their dreams, Mrs. Robinson is relaxing on a chair, and Mr. Robinson is blowing away leaves. Then, Mr. Robinson looks at his wife and blows her. Mr. Robinson chuckles. Mr. Robinson blows at Mrs. Robinson again, he starts laughing. Mr. Robinson blows at Mrs.Robinson again! Then, Mrs. Robinson throws a garden gnome at the blower then, the blower explodes and Mr. Robinson is covered in soot. Mrs. Robinson laughs. Mr. Robinson sets off sprinklers and Mrs. Robinson gets soaked. Then, they start throwing objects at each other. After that, they look around to see there is nothing else left to throw. Then, they turn into super saiyans and, they use so much power, they exploded out of bed.]
[Cut to Sussie sleeping in her bed. Then we go to her dream.]
Person: Okay, cut! And that's a wrap! Alright, thanks everybody.
Sussie: What's going on?
[Somebody off-screen removes the bed behind Sussie, and then removes her accessories, revealing Aurelie Charbonnier.]
Sussie: [Screams and wails in panic] Sussie's turned into a monster! [runs around the room before leaving it.]
Person: Will somebody go check on her? Is she okay?
[Camera cuts to Alan's bedroom. Suddenly a still with a skull on a fiery background pops up for a split-second. It pops up again, and then finally fully shows up. This is followed by a chain of weird/disturbing scenes, including: Strawberries melting, two creepy clown statues, a clown making balloon animals out of Alan's parents, a hand with an eye in the center, and someone scraping their nails on a chalkboard. Cut back to Alan, who is peacefully humming while asleep.]
End of a Night
Moon: Well now you know what joy and fun is in the dreams of everyone.
[Camera cuts back to Larry, still in jail.]
Larry: In three...two...one...[snaps fingers] oh...
Moon: Well, almost everyone. [Camera cuts back to the Moon over some citizen's homes.] So when to bed you have retired...
Marvin: Quiet you, I'm really tired!
Moon: Just count yourself truly blessed...
Harold: Hey, I'm trying to get some rest!
Moon: As dreams abound all over town...
Patrick: Seriously buddy, keep it down! [throws one of his sandals at the moon]
Moon: Enjoy-- [gets hit by Patrick's sandal] Enjoy this moment while it lasts, embrace whatever comes to pass. For the day's always kind of rough, because the night is never long enough.
[Cut to the next morning. Everyone's alarm clocks go off, and several citizens can be heard groaning.]