Hoshino and his friends find a tiny meteorite which displays incredible mental powers. It transforms into any object or person into which the person holding it at the time commands it to transform. Further study is approved, and that study is being conducted until a man with a limp steals the unusual stone.
This man, though not truly evil, is mischievous. He uses the rock from space to create a monster called Gango. The man uses Gango to play tricks on people, steal money and cause practical jokes within a hotel, but he soon ends up wishing Gango to grow to a giant size. Injured, he ends up in a coma, leaving Tokyo at the mercy of Gango, who proceeds to act like a child who plays much too roughly. Gango is met by the JSDF and the Science Patrol, but all their weapons can do is sever one of his radar-like ears, which sends Gango into an enraged frenzy. Finally, Shin Hayata, one of the Patrol's members, has his Jet VTOL knocked into water near the hotel location; while underwater, he ignites the Beta Capsule and is transformed into Ultraman, who then fights Gango. But owing to Gango's cowardly nature, the "fight" takes up enough time for Ultraman to weaken. As Gango sees Ultraman running out of time, as his (Ultraman's) warning light indicates, the criminal awakens from his coma. Seeing what his creation is doing, he wishes the creature away. The towering monster re-transforms back into the softball-sized meteorite, which Hayata calls a "telepathic stone" and says "doesn't belong here." It is gathered by Ultraman and taken back into space.
