Red has 10 Pokemon in total. After beating Brock, he continues on his journey. He buys a Magikarp from a Salesman for $500, battles a Pokemanic for Fossils, and fights a Team Rocket Grunt that stole the TM for Dig. He battles Misty and Lt. Surge and earns their Gyms' badges. During this time his Charmander evolves into Charmeleon. He later gets the Old Rod, the HM 01 Cut and a bicycle, which he uses to go through the Rock Tunnel to Lavender Town, a small and dark town. While healing his Pokemon, Red hears about Lavender Tower and asks the people about it being haunted. When he tells them he doesn't believe in ghosts, they say the white hand on his shoulder must be fake then. He turns around and sees nothing, then turns back around to find that they are gone.
After getting his Pokemon, Nurse Joy tells Red he should visit the Pokemon House before going to the Pokemon Tower. He goes there and a girl named Reina gives him a tour, telling him this is where abandoned, lost and orphaned Pokemon go and that Mr. Fuji, who created and built the place, has recently gone missing. Red sees a Cubone, which shirks away from him. Reina then tells the story of Cubone's mother Marowak: Team Rocket was attempting to steal Pokemon near town. After nearly managing to get a Sandshrew and a Sandslash, two of the Grunts saw Cubone, trying to escape. After attempting to net him and sell him, Marowak leaped out of nowhere and tackled both of them, before urging Cubone to flee. As Cubone escaped, one of the Grunts, infuriated by her intervention, painfully killed Marowak with an electric whip. Mr. Fuji then found Cubone and gave him a loving home; to this day he remains the only one Cubone will interact with. A man comes in and says Mr. Fuji has been kidnapped in Pokemon Tower by Team Rocket. Since no one else is willing to go out of fear of both Team Rocket and the ghosts, Red volunteers to go tonight. Blue overhears this and decides to go sooner to save him so that he can be famous for it. When he gets there though, he sees the ghost telling him to get out. Running away frightened, he runs into Red who had just entered the tower. He tells him about the ghost, though Red thinks he's trying to scare him until the ghost appears.
Red uses Charmeleon to attack it, although he fails since the ghost is intangible, meaning it can't be touched by physical means. Meanwhile, Green walks up the stairs and uses Wartortle to knock out the Rocket members and grabs the Silph Scope. Returning to where Red is, he tosses it to him. Red puts the Silph Scope on and finds out the ghost is Cubone's mother. Suddenly, Cubone arrives and hugs the ghost, who only wanted to see her son safe and sound; now that she has, her spirit can rest. Red goes upstairs and uses his new Jolteon to defeat the Team Rocket Grunts. He rescues Mr. Fuji who takes him back to the Pokemon House where Cubone, having overcome its mother's death, is now happily interacting with other members in the house, especially Reina. As thanks for saving him, Mr. Fuji gives Red a PokeFlute and a box of unknown Gems. Red then departs from Lavender Town to continue his travels.
- Red is able to get the Silph Scope and an Eevee before going to Celadon City.
- Nurse Joy looks different than her game counterpart.
- The story of Marowak's ghost is explained.
- In the games, Blue is at the tower to visit a dead Pokemon, who the fans suspect is his Raticate. Blue also mentions catching a Cubone here.
- Red gets the Silph Scope from Blue instead of Giovanni.
- Blue actually helps Red for once.
- The Mega Stones are never in any of the original games, although it was likely it was added to promote the new Pokemon X and Pokemon Y games.
- This episode contains a reference to the White Hand creepypasta.
- When adding them up, Red has Charmander, Charmeleon, Pidgey, Spearow, Rattata, Caterpie, Metapod, Nidoran♂, Magikarp, Eevee (presumed), and Jolteon. This all adds up to 11 Pokemon, not the 10 as the title says.