Mr. Paper is a gum wrapper that Squidward threw onto SpongeBob's lawn. SpongeBob keeps bugging Squidward about it and asks if Squidward wants it back. Squidward says "no matter how much I may beg, and plead, and cry, don't give that paper back to me- ever!" and SpongeBob agrees to confirm his promise. As Squidward is about to play Mary Had a Little Lamb on his clarinet, SpongeBob laughs about all the fun he is thinking he can have with the paper.
Squidward laughs and enjoys his own time reading Boring Science digest, taking a bath, and drawing art. While drawing, Squidward accidentally paints himself having fun with a piece of paper. When he breaks it, the Squidward painting's mouth is open and invisibly cries by his death. Squidward tries to get it back but SpongeBob keeps his promise. Squidward trades in everything back, and finally his own shirt-cloth and SpongeBob cannot help it and he decides to break his promise. Squidward tries to have fun with the paper but cannot, he traded everything for the worthless piece of paper for nothing and soon Patrick took the paper from Squidward and uses it to put his gum on it and Patrick comes over to SpongeBob to play.