While on lookout duty, the students of Pirate School spy a ghost ship following them, and when they bravely board it they receive a warning that may save their lives, if only they can convince Rotten Tooth or the captain that danger lies ahead.

The young pirates-in-training list suspicious things in the port city of King's Island while running errands for Rotten Tooth, but he dismisses their concerns, leaving the "wee pirate kids" on their own to deal with strange events occurring on The Sea Rat after they return.

Captain Stinky Beard's pirate students, who want to win without cheating, compete in sailing races, treasure hunts, and swashbuckling events at Camp Buccaneer.