Upon reaching the surface, she was awaken by the sound of danger for the ship's propeller rotates nearer to her. She swims as fast as she could but was caught underneath with the pile of dirt and rubbish of the dragnet and gets herself stuck inside a jar as she struggles to release herself from the net and enter the surface.
Cut to a young boy who is holding his toy ship and who's caring mother warned him not to go near the sea. The boy rushes down towards the shore and was about to release his toy ship before something caught his attention. He approached the shore and found a fish stuck inside the jar and he saw a mermaid in it and spontaneously called it Ponyo. He tries to shake Ponyo off the jar but it doesn't came off. Then he tried breaking the jar with a rock. He tries his best to save Ponyo no matter what.
Ponyo was introduced to two grandmothers who are too weak to walk while the other grandmother curse Ponyo because for she presumed that a mermaid who came to the surface will no doubt causes Tsunami. Sosuke ran away and went hiding below the cliff and near the sea shore and vow to Ponyo that he will protect her.
A sudden appearances of Fujimoto summoned the Demon Waves to retrieve Ponyo. Sosuke was in so afraid in losing her that he screams her name to find her. Risa saw Sosuke and brought him back from the sea.
Ponyo and her father have a confrontation, where Ponyo refuses to let her father call her "Brünnhilde" and declares she is Ponyo, and voices her desire to become human, because she has started to fall in love with Sōsuke. Her father silences her with difficulty and goes to summon Ponyo's mother. Meanwhile, Ponyo, with the help of her sisters, breaks away from her father, and uses his magic to make herself human. This causes an imbalance in the world, which in turn results in a huge storm. Riding on the waves of the storm, Ponyo goes back to visit Sōsuke. Risa, Sōsuke, and Ponyo stay the night at Sōsuke's house, hoping the storm will be over, whereupon she leaves the house to check up on the residents of the nursing home she works at.
Granmammare, Ponyo's mother, arrives at Fujimoto's submarine. Fujimoto notices the moon has come out of its orbit and the satellites are falling like shooting stars. Granmammare declares that if Sōsuke and Ponyo pass a test, Ponyo can live as a human and the world order will be restored.
Sōsuke and Ponyo wake up to find that most of the land has been submerged. Risa has not come home yet, so with the help of Ponyo's magic, they make Sōsuke's toy boat life-size and set out to find Risa. While travelling they see ancient extinct fish swimming, such as the Gogonasus and Licosus.
After landing and finding Risa's empty car, Ponyo and Sōsuke go through a tunnel. There Ponyo loses her human form and resumes the form of a fish. Sōsuke and Ponyo are captured by Fujimoto and they safely arrive at the nursing home and meet Granmammare. Granmammare asks Sōsuke if he can love Ponyo even if she is a fish or mermaid. Sōsuke replies that he loves Ponyo in all forms. Granmammare then allows Ponyo to become human once Ponyo kisses Sōsuke on the surface.
Overall, this film is simple and cute. It's almost as if watching Disney's Little Mermaid whose curiousity about the human world and how she fell in love with a man. That is the same exact story but Miyazaki made it interesting as in for children to endure and enlighten about a new story which revolves of an innocent young boat lives on a highland home surrounded with sea. Happens to find a mermaid by shore or by coincidence. Because Ponyo escapes from home to the outside world. A simple tale with a sentimental plot. It's a good watch although there are lack of culture if compare to the previous Ghibli works he has produced.