Sandy Ricks saves a dolphin by pulling a spear out of his side. But his father Porter, a fisherman, insists on releasing the dolphin, especially after the dolphin eats his entire catch for a day. But the dolphin returns the favor when Sandy, snorkel diving to replace the consumed catch, comes under attack by sharks.
After witnessing all the marine animals fleeing the area, Bud and Sandy alert the local folk of a hurricane headed their way, despite their father's instructions and a clear weather forecast. No such hurricane eventuates and believing they have wasted time and money in securing their boats, the towns people look to Porter for compensation. It is only after a tidal wave hits that everyone in the town is grateful to Flipper and the boys for the warning.
Sandy Ricks is sent off for the summer to stay with his Uncle Porter in the seaside town of Coral Key. Initially, Sandy is unenthusiastic and disappointed that he isn't going to a Red Hot Chili Peppers concert. His mood remains unchanged even after meeting Kathy, a local shopkeeper with whom his uncle carries on a flirtatious relationship, and Kim, a girl his own age.