After hiding from Patrick in a jellyfish hive, SpongeBob started eating some jelly inside. When the jellyfish returned, SpongeBob greeted them in a friendly manner, only to end up getting violently stung by them.
SpongeBob gives Fred a sample, and it is so good that he breaks into a song and he gives a sample to everyone else, leading to the success of the new Jelly Patty, until Mr. Krabs goes too far and SpongeBob and No Name stop him. A blue version of the jelly is also introduced, although in the episode, it turned out to just be No Name.
Historically, Jellyfish Jelly has been mass-manufactured in the jellyfish jelly factory, operated by Mr. Krabs in his money-making schemes.
In an attempt to pay off a bill without debt, Mr. Krabs sends SpongeBob and Patrick off to work at Farmer Jenkins' barn. One of their tasks is to milk jelly off a cow jellyfish, which Old Man Jenkins calls Ol' Bessy. SpongeBob manages to get a lot of jelly squirted out onto Old Man Jenkins, but he upsets the cow and it kicks SpongeBob and Patrick to a wall. Patrick then licks the jelly off Old Man Jenkins as he thinks that they are all a sandwich.