Bart and Lisa excitedly discuss their visit to Kamp Krusty, a summer camp run by Krusty the Clown. Homer has made Bart's visit conditional on him getting at least a C average on his report card. Bart receives a D- in each subject from Ms. Krabappel, so he changes each grade into straight A's. Homer chides Bart for not faking plausible grades, but lets him go to camp anyway, because he does not want Bart hanging around throughout the summer.
The camp's director, Mr. Black, has licensed Krusty's name from the comedian. The campers find out that the camp is a dystopia. Dolph, Jimbo and Kearney, the camp counselors, take the children on death marches, and force them into making knockoff wallets for export.
Homer and Marge enjoy their summer alone, with Homer losing weight and growing hair. Lisa writes to them, describing the camp's brutal conditions, but her parents think she is exaggerating. Bart hopes that his hero Krusty, will save them, but Krusty remains unaware of the camp's nature, and is currently visiting England for the Wimbledon Tennis Tournament.
To keep the children complacent, Mr. Black informs the campers that Krusty has finally come, but it is actually Barney Gumble disguised as Krusty. Bart leads the campers in rebellion, driving out Mr. Black and the bullies. Kent Brockman reports on the revolt, where Bart explains the camp's deplorable conditions that caused him and the campers to rebel in the first place. The stress of seeing Bart as the leader of the rebellion during the report on TV causes Homer to immediately lose the hair he grew and regain the lost weight. Krusty is called away from his vacation, and arrives at the camp where the kids at first don't believe its him, until a rough search reveals his iconic pacemaker scar. Krusty apologizes to the children for the poor conditions, saying that he was bribed to approve the camp. As compensation, Krusty takes them to "the happiest place on Earth", Tijuana, Mexico.