The episode begins with Mayor Goodway questioning why she would agree to enter a hot air balloon race against mayors from other towns. She stands inside the basket of her balloon, covering her eyes and fears going at too high an altitude or velocity before Ryder reminds her that she is still on the ground. Mayor Goodway mentions conquering her fear of heights, and is consoled at the thought that Ryder will be there to help her fly the balloon during the race.
Getting the hot air balloon prepared, Ryder asks Chase and Rubble to unroll the envelope. After doing so, Chase spots a gaping hole in the balloon and informs everyone that it will not be able to fly. At this news, Mayor Goodway is resentful and loathes the likelihood of Mayor Humdinger of Foggy Bottom winning the annual race for another consecutive year. Ryder assures her that the balloon will be ready in time, and summons the PAW Patrol to the Lookout. The other pups, who were participating in a hurdles sprint race against each other (refereed by Rocky), begin a new race to the Lookout after being contacted. Chase, Rubble, Rocky, and Zuma all get wedged simultaneously between the elevator doors, with Skye joining them a moment afterward. Marshall soon arrives and knocks them all into the elevator before it ascends.
Up in the observatory, Ryder explains the situation to the pups and the significance of getting the hot air balloon ready to race. He calls on Rocky to find a fitting patch to cover the rip in the balloon, and Marshall to ensure that there are no gas leaks in the burner. With that, they deploy and head to City Hall.
After arriving at City Hall, Ryder hurries the pups to get the hot air balloon prepared as quickly as possible since the race is about to begin. Rocky quickly examines the tear in the envelope and immediately goes to grab a patch from his recycling truck. In the meantime, Marshall sniffs around the gas tank and confirms that no leaks are present. Ryder tests the flame – which is in functional order – and Rocky glues a patch over the rip in the envelope. With everything in working condition, the balloon is inflated and Mayor Goodway is thrilled with their success.
Seeing other hot air balloons about to cross the starting line at Farmer Yumi's silo, Ryder turns off the flame and leaves to grab his flying gear. While Marshall and Rocky follow Ryder, Mayor Goodway enters the basket and psyches herself up for the race using positively reinforcing statements. However, while doing so, she accidentally ignites the flame and the hot air balloon begins to take off. Rocky and Marshall observe the mayor's balloon taking flight and attempt to grab onto a rope hanging from the basket (to weigh the balloon down). Marshall manages to bite onto the rope, but is carried upward with it. Ryder, now with his flight gear on, notices and runs after the balloon – catching Marshall when he loses his grip on the rope. Still rising, Mayor Goodway shouts frantically to Ryder for help.
Back at the Lookout, Skye and Chase use the periscope to watch the race, but realize that Adventure Bay's balloon is not among those of the other participants. Skye is then called by Ryder via her pup-tag and asked to help get him into the hot air balloon alongside Mayor Goodway.
In the air, Mayor Goodway builds up the courage to uncover her eyes. Just in time to avoid hitting Farmer Yumi's silo, she unties a sandbag from the hot air balloon (allowing it to rise over the structure). In the process, a chicken that was on top of the silo jumps into the basket. Mayor Goodway immediately adores the chicken and places it in her open purse. Not far ahead, the pilot of Mayor Humdinger's balloon points out that his lead is slight to Mayor Goodway. Mayor Humdinger expresses his surprise and commands his pilot to fly as speedily as possible.
At the Lookout, Ryder secures a harness to himself and attaches it to Skye's helicopter using a cable. They take to the sky and Ryder shortly finds Adventure Bay's balloon as it heads toward Seal Island. In the hot air balloon, Mayor Goodway is still terrified, and continues to cower and cover her eyes despite seeing Ryder on the way. Skye catches up to the balloon and swings Ryder over to the basket on her second attempt, with Mayor Goodway helping him in. With Ryder now beside her, Mayor Goodway is eager for the flight, and Skye heads to the finish line, wishing the two luck. Ryder soon notices their balloon's impending collision with the lighthouse on Seal Island and increases the flame to ascend above it. Afterward, he and the mayor focus their attention on the race, though they are well behind the other participating balloons.
Meanwhile, Mayor Humdinger uses a telescope to observe his lagging competition, and begins to gloat of Foggy Bottom's upcoming victory. He is soon shocked and dumbfounded to realize that he is being passed by Mayor Goodway. Angered by the competitive taunts shouted by Mayor Goodway, Mayor Humdinger yells at his pilot to overtake the Adventure Bay balloon. Ryder and Mayor Goodway then spot Jake's mountain approaching (on the other side of which is the finish line), and Ryder suggests rising in the air to be pushed by stronger winds. Mayor Goodway agrees and is exhilarated at the thought of winning the race. Behind them, Mayor Humdinger is frantic to catch up to them.
As the two balloons approach the finish line, the pups (among other Adventure Bay citizens), stand cheering for Ryder and Mayor Goodway at the foot of the mountain. Mayor Goodway herself gets cocky just before being overtaken by Mayor Humdinger. Ryder states that they will have to drop quickly in order to win, and Mayor Goodway is supportive of the decision. In a close finish, the Adventure Bay balloon manages to break the finishing ribbon first, and lands in the designated spot. All of the spectators celebrate and Mayor Humdinger contemptuously awards them with the race's trophy. Mayor Goodway passes the trophy to Ryder and the PAW Patrol for their significant involvement in the victory, and a barbecue is held at City Hall for the celebration.
At the barbecue, everyone is fed with burgers made by Mr. Porter, and Mayor Goodway thanks Ryder for his help. In the presence of Mayor Humdinger, she also informs Ryder that she signed up for the Mayor's Submarine Race, and asks him to be her captain. Mayor Humdinger laughs and cockily states that Foggy Bottom will win the race as it had the previous year. The two mayors then comment back and forth about their predicted victories, while Ryder chuckles at the silliness of their rivalry.