The Imaginary Island first appears as a nice, green island with trees and water. However, after days have passed (hours in the real world), it starts to burn tremendously, ending the island.
Role in episode
Mr. Krabs is first seen on the island where he was relaxing next to Mrs. Greenback. However, things soon turn dire once the Money dragon appears and eats Mrs. Greenback. Mr. Krabs then wrestles with the Money Dragon where it turns out to be a vacuum cleaner in the real world.