Preparation for the SOS Brigade's short film continues, with character roles revealed—Yuki as an evil alien, Itsuki as an esper, and Mikuru as a battle waitress from the future. Mikuru is forced to dress in an embarrassing waitress costume for her role, while Yuki appears as a witch. On the first day of filming, the Brigade film two commercials to advertise their sponsors with Mikuru dressed in her waitress costume and then her bunny girl costume, much to her embarrassment. They then film several scenes in a park, and Kyon points out that Haruhi did not actually write a script.

Shooting of the SOS Brigade's short film continues. During the battle scene, Haruhi is displeased with Mikuru's acting. She yells at her, demanding that Asahina try to shoot a laser beam from her contact-lens-colored eye, but Kyon manages to cool her down . Afterwards the scene is reshot but, to the surprise of everyone except Haruhi, Mikuru actually shoots laser beams from her eye. Yuki knocks Mikuru down and apparently takes her contact lens. In a conversation Itsuki explains to a shocked Kyon that Haruhi changed reality once again and Nagato proves his words by showing her hand, burnt while protecting Kyon from being hit by the laser. Koizumi promises to take care of Mikuru's problem with Yuki's help. The rest of day is spent on shooting more scenes with Mikuru dressed as a bunny girl. The next day Kyon finds out that Haruhi dragged Tsuruya, Taniguchi and Kunikida to help. After Haruhi gets off to pick up Mikuru, Itsuki explains to Kyon that Yuki succesfully helped Mikuru get over herself. Haruhi returns with Mikuru, who secretely tells Kyon how Yuki helped her: she bit her to inject nanomachines into her body. Haruhi leads everyone to the next shooting location, a lake near Koizumi's house.

As the SOS Brigade shoot more of their film, Haruhi tries to give Mikuru another contact, ergo another superpower. Yuki quickly takes action and injects her with more nanomachines before any damage could be done. Despite the weird phenomena Haruhi's film is causing, Itsuki suggests it is better than more closed spaces being opened up. However, when Kyon discovers Haruhi arranged for Mikuru to be drugged for a kiss scene with Itsuki, he gets furious at her shabby treatment of Mikuru and almost hits her, forcing Itsuki to hold him back. This causes Haruhi to become depressed, having always thought Kyon would support her. Kyon, reluctantly learning something from Taniguchi, later apologizes to Haruhi and filming resumes. However, he seems to have inadvertently encouraged Haruhi even more, making cherry blossoms grow out of season.

Deciding Yuki needs a familiar for her role, Haruhi picks up a stray cat and names it Shamisen. However, when Haruhi leaves that day, Shamisen starts talking as a result of Haruhi's powers. Itsuki suggests that they need to remind Haruhi her movie is a work of fiction, before reality takes any more damage. The next day at school, Mikuru gives him a coupon for her class's yakisoba café, and gives her views on Haruhi that she couldn't say in front of Itsuki. Kyon later talks with Yuki, who throws up the idea that one of them, including herself, may be lying. As shooting resumes, Haruhi's powers to continue to make Mikuru a deadly weapon. Itsuki calls Kyon out later that night, asking him to find a way to hold back Haruhi's powers. Kyon convinces Haruhi to add a disclaimer at the end, saying the film is a work of fiction, and the rest of the shooting goes without a hitch. Kyon falls asleep whilst editing the movie, only to find it has edited itself overnight. At the very last of this episode, there is a flashback to May that Kyon tries telling Haruhi that Yuki, Mikuru and Itsuki are actually aliens, time travelers and espers, but she doesn't believe him.