He is one of the many guests at SpongeBob's surprise birthday party, where he pulls pranks on the various party goers. He hits Tom with a cupcake, and Tom then asks Squidward for one of his paintings so he can hit the hat kid back. Tom then throws it, but it misses.
The hat kid later sprays whipped cream on the floor and runs off. Mrs. Puff comes by and slips on the whipped cream.