Austin has never won a race before, but he is well prepared for the most difficult race ever, 'The Race Around the World'. He will compete against veteran racers Uniqua, Pablo, and Tyrone for his first gold medal.
Austin comes out of the fence dividing his house from the other characters' houses wearing a black belt. He yells "On your mark, get set, go!" and begins to run. Austin stops running to greet the viewer. He explains how races start and pretends to begin a race. He then admits that he has never won a race, though he has yearned to for a long time, and thinks that he will win the upcoming "Race Around the World", even though the race is the most difficult race ever. Austin begins to sing the song Racing Day. Tasha appears and tells Austin that the Race Around the World is about to begin. Tasha asks about the race pack Austin is wearing around his waist. Austin tells her that inside it is everything a racer needs to be prepared. The backyard transforms into a forest. Austin is shown wearing a blue jogging suit and Tasha is shown in a white and orange uniform.
The starting line for the Race Around the World is shown. Tasha explains to Austin the four phases of the race, as indicated by the overhead banner: Run through the forest, snowboard through the mountains, paddle across the ocean, and last, hike across the desert. From her referee podium, Tasha announces each of the racers, one at a time. Austin's fellow competitors are also wearing jogging suits. First, Tasha introduces Pablo and announces that Pablo has already won a gold medal for a running race. Second, she introduces Tyrone and announces that he has already won a gold medal for a snowboarding race, and third, she introduces Uniqua and announces that she has already won a gold medal for paddling in a kayak race. Austin notices that he's the only racer who doesn't have a medal. Tasha introduces Austin as a brand new racer, and points out that even though he's never won a medal, he is prepared. Austin joins the others at the starting line and they all wish him good luck. The characters sing a reprise of Racing Day. Tasha yells "On your mark, get set, go!" and the racers begin running. Hurdles are shown up ahead. Pablo easily jumps over them, though Uniqua, Tyrone, and Austin have a more difficult time. Austin is in the rear while Uniqua and Tyrone are ahead of him. They sing Go, Go, Go!. Uniqua does not jump high enough over a hurdle and hurts her knee. Austin spots her and takes a bandage out of the pack on his belt. He gives it to Uniqua and tells her that he is always prepared.
Pablo, since he was faster than the others, arrives first at the end of the forest, and finds a snowy area. He walks over to a pile of snowboards and picks one up. He also puts on his snowboarding gear. Pablo sets off on the snowy slope, and wobbles. The camera moves to Uniqua and Tyrone, who have arrived at the snowy area. They put on their snowboarding gear and begin snowboarding around poles. Austin arrives and does the same. Tyrone begins singing Snow is Cold But I Am Cool. The other characters also sing. Pablo accidentally snowboards over the edge of a cliff. He holds on to the edge of a sign so he will not fall. Austin appears and spots Pablo. He takes a rope from the pack on his belt and hands it to Pablo.
Austin pulls Pablo up. Pablo thanks him. Austin tells Pablo that he is always prepared. The characters begin snowboarding again. Tyrone, now in the lead, arrives at the end of the snowy area and to the ocean. He grabs a canoe and a paddle and sets off into the ocean. Uniqua, Pablo, and Austin do so as well. Tyrone is shown, still paddling. He loses his grip on the paddle and it flows away. Uniqua and Pablo pass Tyrone. Austin sees Tyrone without a paddle. He also spots Tyrone's lost paddle and takes a metal claw out of his pack. He uses the claw to retrieve the paddle and give it to Tyrone. Tyrone thanks Austin and takes the paddle. Austin tells him that he is always prepared as the two paddle to land.
Uniqua and Pablo have arrived on land and have begun crossing the desert ahead. Tyrone has arrived as well, leaving Austin the last one to arrive at the desert. Tyrone catches up with Uniqua and Pablo. The three are all exhausted and sit down beside a cactus. Austin sings Austin's Lament and spots the other racers sweating and panting near the cactus. He takes a water bottle from his pack and allows the others to drink from it. He also drinks from the bottle. Now, the competitors are ready to begin racing again. They cross the desert and spot the finish line in the forest up ahead.
The four dash to the finish line, but the tape pushes them back. They try again, but they do not get the tape to break. Austin takes a pair of scissors from his pack and cuts the tape with them. He has now won the race and is awarded with a gold medal by Tasha. The other competitors cheer for Austin, who has now won his first race. Uniqua's stomach growls. The other racers are confused. Uniqua tells the others that the sound was just her stomach and invites the other characters over to her house for chocolate chip cookies. The forest transforms back into the backyard as the characters sing the end song and head to Uniqua's house for a snack. Austin opens the previously closed door and shouts "Dunt-da-daaaahhh!!!!".