- SpongeBob SquarePants (minor antagonist)
- Sandy Cheeks (protagonist)
- Eugene H. Krabs
- Patrick Star
- Audience (Antagonists)
- Bikini Bottomites
- Dougie Williams
- Fred (3 speaking cameos)
- Mable (cameo)
- White Fish
- Martha Smith
- Old Man Jenkins
- Harold (red fish)
For one night a week, the Krusty Krab is converted into the "Komedy Krab", featuring some of Bikini Bottom's best comedians taking the stage. SpongeBob is performing tonight as one of them. He takes the stage and begins an awful routine about his job, making poor jokes about salt, tomatoes, and forks. A heckler tells him that his act "smells funny, and puts people to sleep," throwing him off further. As SpongeBob tries to make a witty observation, he notices Sandy's buck teeth, and starts joking about them to which the audience responds positively. SpongeBob begins telling more "squirrel jokes" about how stupid squirrels supposedly are and everyone starts laughing, except Sandy. After his act, Sandy confronts SpongeBob backstage and tells him that his jokes are hurtful, but he insists that it's just an act, and says that, "Everyone knows you're the smartest creature in Bikini Bottom".
During the next day, however, everyone starts making fun of Sandy, and on the night of the Komedy Krab, she confronts him again, explaining how the jokes are affecting her public image and asking him to use some of his "other" jokes instead. When he goes on the stage, SpongeBob begins to do his original, pitiful routine from last week and soon drops the microphone and leaves the stage. However, he then comes back and continues his squirrel jokes and does them this time with fake buck teeth and a Texas accent with which they become even more offensive. After the performance, he finds a note from Sandy, stating that she has realized that his jokes really are funny, and she invites him to her Treedome.
When he visits her, however, Sandy looks and acts as his jokes make her out to be: an idiotic, clueless redneck. Sandy removes his water helmet. When SpongeBob starts to dehydrate, Sandy gives him too much water. As SpongeBob fills every inch of the treedome, he learns his lesson, saying, "Okay, Sandy, I get it! No more squirrel jokes."
At the next Komedy Krab event, SpongeBob tells a single, toned-down squirrel joke. However, he makes fun of everyone else as well, including himself, fish, and crabs. SpongeBob and Sandy give each other thumbs up signals, indicating their restored friendship. After that SpongeBob begins saying, "and don't even get me started on starfish..." as the episode ends.
- This episode is ranked eighteenth in Tom Kenny's Top 20 on iTunes. His description says:
"I started out as a stand up comedian, so it was fun to perform as the kind of schlockmeister I strove not to be. Stand ups are always fighting between doing more original material or repeating what works. SpongeBob goes for the pander, without thinking about the feelings of the person disparaged by his material."*In the movie Firewall, SpongeBob can be heard saying the line "Did you ever notice how big squirrels' teeth are?" from this episode in one scene, meaning this episode made a cameo in the movie.
- The title card design is nearly identical to that of "Funny Pants".
- SpongeBob's goldfish joke was used as the Comedy Central Joke of the Day on July 17, 2009, the day that the Ultimate SpongeBob SpongeBash happened.
- This is the sixteenth time Squidward doesn't appear.
- During one of the close-up shots of the audience, Harold and Schubie switch seats.
- The background of the title card is a reference to the real life comedy bar Improv. The brick wall appears behind the stage of a comedian.
- This is the second time SpongeBob brings Sandy flowers and dries up in the treedome. The first time was in "Tea at the Treedome".
- Squirrel jokes are a parody of blonde jokes.
- "Mermaid Man and Barnacle Boy III" and "Squirrel Jokes" is the second pair of episodes where Squidward doesn't appear in either. The first pair was "Arrgh!" and "Rock Bottom".
- This is the third time SpongeBob was not wearing a water helmet in Sandy's Treedome. First was in "Tea at the Treedome", second was in "Survival of the Idiots", fourth was in "A Flea in Her Dome", fifth was "Gone" and sixth was "Yours, Mine and Mine".
- This is the second time a live action bug was seen. The first was Wormy.
- Spongebob says he has no bones, however episodes such as Prehibernation Week, Roller Cowards and Shell of a Man prove otherwise.
- In the Krusty Krab, there is no door shown.
- This episode may be a reference to Culture Shock were Squidward hosts a talent show which in this episode its a talent show but Squidward doesn't appear in this episode.
- When Harold was making fun of SpongeBob's jokes he had a shirt on, the next time he was shown he had no shirt.
- SpongeBob dried up immediately when Sandy removed his water helmet, and it took longer in "Tea at the Treedome".
- When SpongeBob said "Okay Sandy I get it! and "no more squirrel jokes" his mouth didn't move.
- When SpongeBob tells the crab joke, Mr. Krabs doesn't have legs.
- When Sandy is in the grocery store and the three fish start making fun of her, the hat-wearing fish's lips flicker orange for a fraction of a second.
- Sandy and Patrick are sitting at the same table throughout SpongeBob's act. However, the image behind them alternates between a window and a wall between different shots throughout the episode.
APM music identification
- Andy Anorak - Title card; SpongeBob's comedy sets.
- Stand-Up Comic B - "You! Your act!"
- Stand-Up Comic C - "At least I don't have to clean up my act."
- Stand-Up Comic D - SpongeBob's goldfish joke.
- Hawaiian Link A - SpongeBob goes over to the Treedome.