Morning at the Turner house, and Mr. Turner opens the door to retrieve the newspaper. He checks the weather, and sees that it is going to rain. He suspects that it could only be the work of his neighbor, Sheldon Dinkleberg. Later, he accidentally puts on a tie which doesn't match his shirt, to which he also blames Dinkleberg. Finally, the milk carton is empty and he has to eat his cereal without it, and he declares that this time Dinkleberg had gone too far. Confused as to why he would blame his neighbor for everything, Mrs. Turner says that Dinkleberg is nice, but her husband thinks Dinkleberg put a mental controller on her brain. When Timmy tries to go to school, his Dad stops him and takes him to his room, which he has converted into a base for Operation: Dinkleberg, a plan by Mr. Turner to expose his neighbor for what he really is. When Dinkleberg goes inside his house, Mr. Turner realizes he has no indoor camera, so he gives Timmy a girl scout costume to sell him cookies with secret cameras in them.
The plan goes well until Dinkleberg eats the cookies, and the camera shows an intestine much to Mr. Turner's confusion and his sons horror. Mr. Turner then plans to disguise Timmy as Santa and make him give Dinkleberg a plushy panda with a camera, but it backfires when Dinkleberg plans to gift the panda to charity. An exasperated Timmy tries to convince Dad that Dinkleberg isn't evil, only for his paranoia to grow and he thinks Timmy is controlled by Dinkleberg too. Mrs. Turner comes up, offering them lemonade, but Mr. Turner thinks its a mind-controlling potion and escapes through an escape chute. Acting alone, Mr. Turner infiltrates into Dinkleberg's house disguised as his wallpaper and tries to not make noise, but when he eats a camera-cookie, he wakes Dinkleberg up, who then offers Mr. Turner coffee. When everything appears to be okay, Dinkleberg suddenly presses a button in his portrait which turns the house into an intestine-shaped lair, while he reveals that he really was behind all of the evil misdeeds that plagued Mr. Turner's day, and proving he was right about Dinkleberg all along all this time.
Dinkleberg reveals he's the leader of M.E.A.N. (Ministry of Evil and Abusive Neighbors), and that everything he blames him for that morning was true, he put the rain sticker on the newspaper, he painted all the ties with a paint bomb and emptied the milk carton with a blow dart. Timmy sees this through the camera and goes to help his Dad. He poofs up in Dinkleberg's lair, where Dinkleberg's piranhas momentarily eat Cosmo, Wanda and Poof while they were in fish shape before they could set Timmy's dad free. Dinkleberg asks Mr. Turner if he knows what this is while holding up an expensive tool, and Mr. Turner replies that it's the new super drill he loves, to which Dinkleberg says he will never lend it to him, the most evil thing ever to Mr. Turner. Dinkleberg sends spiky ball traps to catch Timmy, but he destroys one and frees his father. The two Turners then destroy the rest of the cameras, but Mr. Turner soon flees in cowardice. Left at the mercy of his neighbor, Timmy asks Dinkleberg if he really is evil. Dinkleberg suddenly reveals that it was all just an elaborate scheme, he was only faking because he knew how much it meant to Mr. Turner to think he was evil. To accomplish this, Dinkleberg even spent over thirty thousand dollars building the intestine shaped lair. Mr. Dinkeberg then presses a button that restores his living room, as the piranhas regurgitate Timmy's fairies/goldfish. Mr. Dinkleberg then gives Timmy a bike and some money, then sends him on his way while telling Timmy to keep it all a secret. Mr. Turner tells Timmy he is so happy that he is right, but he then thinks that Mrs. Marinelli, the other next door neighbor, is evil too, and disguises Timmy as a girl scout once again to prove it. Timmy sighs as the episode ends.