Ash and his friends decide to set up for the night, having not run into any scary Pokémon. Misty doesn’t want to stay in the forest overnight though. The group finds a cabin, and they find it to be uninhabited. They decide to set up inside for the night. As they head inside, a red-eyed creature watches them from the bushes and soon begins to walk around. The sounds lead Misty to wake up and she goes on to disturb Ash’s sleep. Ash suggests that it is Brock muttering in his sleep, but Misty dismisses that suggestion as the rustling sound from outside continues. Brock suddenly wakes up from his nightmare, scaring his friends in the process. The group heads outside, not spotting anything, as a figure enters the cabin undetected. They head inside, back to bed, when Misty notices something in her sleeping bag. She screams and points it out. Ash pulls off the blanket and notices a sleeping Teddiursa. Ash checks it with his Pokédex. As Teddiursa wakes up, Misty is immediately taken by its cuteness and wants to catch it. The Poké Ball frightens Teddiursa, and it rushes to Misty to seek comfort. She decides to hold off and hugs the Little Bear Pokémon. Unbeknownst to the others, Teddiursa grins evilly. The next morning, Misty wakes up and yells at Psyduck, waking the others in the process. They notice Psyduck holding two apple cores, assuming that Psyduck let itself out overnight and ate them, though Psyduck seems upset. Letting it off, she returns Psyduck to its Ball and goes on to hug Teddiursa.
(Source: Bulbapedia)