The Blue Badge of Courage (Japanese: カスミ！ブルーバッジをゲットせよ!! Misty! Get the Cascade Badge!!) is the 10th episode of Pokémon Chronicles.
Misty, in her Gym, feeds her Pokémon, like Horsea and Seel. Psyduck starts walking by the pool and slips, falling into the water. Misty pulls it out, displeased how it still cannot swim. Misty hears someone and goes to the entrance and meets Tracey. Tracey came here to help Misty, since Prof. Oak thought she may need help. Misty admits she wants to teach Psyduck how to swim, since it is afraid of water. Tracey decides to do so, having a plan about it. At the pool, Tracey motivates Psyduck with slight exercise, even if Misty has to force it. Tracey enters the pool and Misty goes to put Psyduck in as well. However, after soaking its feet, Psyduck panics and runs away in fear. To adapt Psyduck, Misty and Tracey put a tube around it, so it can't be frightened in the water. Soon, they remove it and try to get Psyduck in the water, but it starts running away once more.
Sakura came to the Cerulean Gym with Espeon. She enters it and Psyduck bumps into her. Later, Misty apologizes to Sakura Psyduck bumped into her. Sakura admits she came here for a re-match. Tracey greets Sakura, who thinks he is Misty's boyfriend. Misty denies that, since he is her friend, who traveled with her and Ash in the Orange Islands, since they were doing some work for Professor Oak. Sakura is amazed they know the famous Professor Oak, while Misty introduces Sakura, whom she met in Ecruteak City, to Tracey. Misty shows Sakura the pool, who wants to re-match today. Sakura asks Misty does she have any badges, since Sakura won three already and needs two more to enter a special tournament. Misty tries to look for the badges, but sees there are no any. Misty contacts her sisters and asks them where are the badges. The sisters reply they ran out of the badges and have to go to Rifure Village to pick them up from an artist. The sisters log out, making Misty feel like Cinderella.
Misty locks the Gym up and gives the keys to Nurse Joy, asking her to feed Gyarados, though it is on a special diet. The group moves on and, before the night, Misty notices they are close to the village, according to the map. Suddenly, Espeon runs off and the group finds a man lying on the grass. They carry the map up, who has been doing his morning practice, by leaping from tree to tree, and fell down and twisted his ankle. The man thanks them for assistance, while the group asks if he knows if there is a person making Gym Badges. The man replies he is that person, introducing himself as Kinso. Misty asks for a badge, insulting Kinso, who claims they have to work hard to earn such badges. Tracey and Sakura decide to help Misty in this task.
Next day, in 4 AM, Kinso wakes the group (who is half-asleep) and orders them to run around a mountain, to "improve circulation". Sakura, Misty and Tracey start running, but soon get exhausted. After having done the task, Kinso orders them to chop wood, remove metal from the fire oven and shape it. After polishing the metal, the group sees they made Cascade Badges. Kinso is not pleased, as they must be perfect. The next day, Kinso has the group do the same routine again. After the last task, Kinso has the group paint the badges, pleasing them, before sending them to run around the mountain. After they return, Kinso has them paint the badges them once more, allowing the badges to shine well. However, before letting them have the badges, Kinso decides to battle Misty.
Kinso sends Feraligatr and Misty goes to send Corsola, but Psyduck comes out. However, Feraligatr scares Psyduck, who runs off and falls into a lake. Misty grabs Psyduck and pulls it out, but Kinso, seeing Psyduck cannot swim, refuses to give Misty the badges. Tracey reminds them they worked too hard to give up, so decide to teach Psyduck to swim. However, Psyduck is afraid again and runs off and bumps into Kinso, who was shocked. The group visits Kinso, who reports he was robbed. Kinso thinks he was robbed by some people, who steal badges, rather than earning them the fair way, even sometimes selling them. Sakura sends Beautifly to find the thieves. Soon, Beautifly finds the thieves, who claim it is much easier to earn badges this way. The thieves encounter the group, who demand the badges back. The thieves send Poochyena and Zigzagoon, which Tracey starts making drawings of.
Espeon tackles Poochyena and dodges Zigzagoon's Heabutt. Psyduck attempts to scratch, but spins around and fails. Espeon uses Swift, which Poochyena dodges. Poochyena tackles Psyduck and bites it on its head. However, it activates Psyduck's abilities, as Psyduck uses Disable, countering Zigzagoon's attack and sending it and Poochyena off. Using Confusion, Psyduck bashes the thieves and their Pokémon to a tree. The thieves kneel and apologize for the trouble. Kinzo is disgusted, but lets them run off, since they promised not to steal any more. Later, Kinso is pleased with Misty's Psyduck and decides to give them the badges, since she proved her worth. Kinso reminds Misty to be a Gym Leader, people expect of them to be courageous and support their friends in the time of need. With the badges obtained, Sakura asks Misty for the battle.
At the Gym, Corsola attacks, but is tackled by Espeon. Corsola uses Spike Cannon, but Espeon dodges and dives. Misty is surprised Espeon can swim and tells Psyduck it can learn something from Espeon, who gets hit by Swift. Corsola uses Recover and tackles Espeon. Espeon dodges Corsola's Spike Cannon and tackles Corsola, defeating it with Psybeam. Sakura wins the battle, so Misty gives Sakura the Cascade Badge. Sakura is glad and gives the badge Sakura made to Misty. Sakura sets off with Tracey, wanting to meet Professor Oak and bids Misty farewell with Tracey.
Misty reads the title card in the episode.