Mr. Blue tells Diane the mission is a success and for her to hand over Seventy-Six; he’s needed right away in the government’s war against terrorists. Diane is gobsmacked by this bit of news. She trained the dogs for espionage. HAL instructs Seventy-Six to run. 

 As Gary leaves the patent office, Seventy-Six jumps in the back of his SUV and discovers Ginger’s missing doll. Seventy-Six, invisible, jumps on Ginger. She screams up a storm as she's pushed down and licked. When she discovers that he’s a real invisible dog, she’s thrilled. She names him Ralphie. Gary and Clem thinks Ginger’s new dog is make believe.

Mr. Blue and Mr. Water search for Ralphie while Diane is distraught at losing her beloved dog and possibly her government contract. 

Gary and Clem finally realize that Ralphie is a real dog, and one of Gary’s inventions allows them to see him, if only briefly.  Diane asks Gary to help her devise a plan to keep him safe from the government agents.

Mr. Water and Mr. try to capture Ralphie. They break into the Smalley home at night, but he keeps alluding them. Ralphie sneaks out one night to scare the agents away; Ginger sneaks out after him. At the crack of dawn, Gary, Diane and Clem discover Ginger and Ralphie missing -- possibly kidnapped and dognapped.  They set out to find and rescue them with the aid of Gary’s invention.  

It’s a happy ending for all.  The Chief retires Ralphie and Ginger gets to keep him. Diane is awarded the full contract for her espionage program. Mr. Water shows up with a government contract for two of Gary’s inventions.