Four Baywatch lifeguards go to San Diego to demonstrate water rescue procedures to lifeguards in the area. However, they end up staying in a haunted hotel.
Mitch's older brother, Buzz, a surfing nomad, arrives in town for a visit with his newfound 12-year-old son Kyle, an angry and neglected kid who constantly gets himself and Hobie into trouble.
Stephanie, with the aid of the Coast Guard, search frantically for the missing Mitch and Buzz. The lifeguards find out the truth behind the ghost tales at the hotel.