SpongeBob the musical tells the story of SpongeBob and his friends in Bikini Bottom facing imminent disaster when a nearby volcano threatens to erupt and destroy their home. The residents of Bikini Bottom react in various ways to the impending catastrophe, with some succumbing to panic and others trying to find solutions. Ultimately, SpongeBob and his friends must come together to save their underwater community, proving that optimism and unity can overcome even the most challenging situations.