Free Squiddy is the fifth episode of the second season of Kappa Mikey and the thirty-first episode overall.
Team LilyMu are pursuing Gonard in the air. They manage to down his helicopter with a missile, causing him to crash into a garbage dump. The Team confront Gonard on the ground, but Gonard summons a number of garbage robots to attack them. They are able to defeat the robots, with Mikey using Guano as a weapon. Guano is dirtied as a result, and the stench drives Lily off. Guano is forced to end the scene.
The rest of the cast are also bothered by the smell, but Guano refuses to clean himself, despite acknowledging the smell. Ozu arrives and asks why the scene is not being filmed. After discovering that the cause is Guano's stench, he orders Lily to clean him. The rest of the cast decide to go to the fish market to get sushi.
At the market, Gonard scares off several vendors with his voracious appetite. Mikey notices a squid in a tank on a nearby truck, which Mitsuki identifies as a rare emperor squid. Mikey quickly makes friends with the squid, which he names Squiddy. The truck carrying the squid beings to leave with Mikey on it, so Mitsuki and Gonard jump on as well.
Lily attempts to use Mitsuki's doll cleaner to clean Guano, despite his objections. Guano is successfully cleaned, but gets a curl in his hair.
The truck carrying the squid, Mikey, and his friends pulls into a warehouse. Mikey, Mitsuki, and Gonard go off to investigate, leaving Squiddy behind. They wander onto the set of the competitive cooking show "Chefs of Steel", which Gonard loves. Gonard approaches Chef Saba to ask for his autograph and overhears him saying that he plans on using the emperor squid as an ingredient in a meal. Gonard, however, does not realize he is referring to Squiddy and does not mention this to the others. When they return to the truck, they discover that Squiddy is gone, and Gonard recognizes his error. Mikey and Mitsuki confront him, and he sheepishly tells them what he heard.
Mikey and his friends attempt to rescue Squiddy by impersonating squid doctors. They are able to free him from the tank and make off with him.
Guano attempts to fix his hair, but to no avail. He is approached by a shady salesman who offers to sell him an illegal hair gel that will fix his hair. Guano is initially hesitant, but eventually gives in and uses the gel.
Mikey has transported Squiddy back to his apartment for safekeeping. Squiddy misses the ocean, but Mikey attempts to convince him to remain with him on land. Chef Saba arrives disguised as an environmentalist and reveals that he tracked Squiddy using a GPS device. Saba convinces Mikey to allow Squiddy to return to the ocean.
Guano presents himself to Ozu, whom he impresses with his cleanliness. However, Ozu becomes stuck to Guano after attempting to pet him, with Lily and Yes Man getting stuck soon after.
Mikey and his friends take Squiddy to the pier, where they turn him over to Saba, still in disguise. Saba's cover is blown, and he reveals himself before fleeing with Squiddy. Mitsuki and Gonard lose hope of rescuing Squiddy, but Mikey inspires them not to give up.
Guano has become stuck to various objects in Ozu's apartment and realizes that his stickiness is due to the hair gel he had used. Ozu and Lily attempt to find a remedy.
Mikey and his friends infiltrate Chefs of Steel and challenge Chef Saba for the ownership of Squiddy. Saba easily defeats Mikey, but Mikey is able to escape with Squiddy. They carry Squiddy to the ocean with Saba and his henchmen in pursuit. They manage to release Squiddy, but Saba points out that they have released him into an enclosed lagoon, preventing Squiddy's escape.
Lily discovers that salt water is needed to dissolve the sticky gel, so Ozu attempts to move them all to the ocean. They roll out of the building and down the street, getting stuck to more and more objects as they go along.
Chef Saba drains the lagoon in order to recapture Squiddy. Mikey is able to give Squiddy a scooter, which he uses to escape the now-empty bowl of the lagoon. Squiddy makes it back to the ocean, but Saba attempts to shoot him with a harpoon gun. At the last moment, the sticky ball arrives at the shore and rolls up everyone present before falling into the ocean. The water dissolves the gel and everyone is freed, including Squiddy.
The LilyMu episode is finished, this time with Mikey using a shield instead of Guano to block the garbage robot's attack. Mikey is then able to defeat Gonard by blowing him away with a laser.
- The title of this episode is a reference to the film Free Willy.
- The television show "Chefs of Steel" is a reference to the real-life television show Iron Chef.
- The sticky ball that results from Guano becoming stuck to an increasing number of objects is a reference to the video game Katamari Damacy.