It is Donald Duck's birthday. Winnie the Pooh and his friends came to the celebration. He receives three presents. The first present is a film projector, which shows him and Pooh and his friends a documentary on birds including the Aracuan bird, who received its name due to its eccentric song. The Aracuan also makes several appearances throughout the movie. The next present is a book entitled "Brasil" given to Donald by José Carioca who greets Donald and the others with much enthusiam from actually inside the book. José sings a song about how much he loves Bahia, he then shrinks Donald and Pooh and the others down to his own small size and the book takes them to Bahia. After the journey the seven climb out of the book and Donald rushes excitedly towards his other presents before realising he, Pooh, his friends, and José are too small to open them. José demonstrates the use of black magic to return himself to his original size by blowing on his forefinger. Donald greatly amuses José by blowing himself into various shapes until he is corrected by José to use his forefinger instead of his thumb. The third and final present to open is a box from Mexico, revealing Panchito Pistoles who makes José, Pooh, his friends, and Donald caballeros, along with himself forming the three caballeros. After singing a song to celebrate, Donald and José frustrate after Panchito gave a particularly long note ending his song, he delivers a piñata as a present for Donald. Panchito tells of the tradition of the piñata in Mexico and its assosiation with Christmas. He then blindfolds Donald and tells him to hit the piñata. Panchito and José (along with Pooh and his friends) enjoy teasing Donald with the piñata for a while before he finally manages to smash it open, revealing many surprises. The celebration ends with Donald Duck being fired away by firecrackers in the shape of a bull (the firecrackers are lit by Jose with his cigar).
The film's segments include:
- The Cold-Blooded Penguin involved a Penguin named Pablo, reproducing images of the penguins of Punta Tombo in Angentina along the coast of Patagonia, "Pablo the penguin" is so fed up with the freezing conditions of the South Pole that he decides to leave for warmer climates.
- The Flying Gauchito involved the adventures of a little boy from Uruguay and his winged donkey, Burrito.
- Baia involved a pop-up book trip through Baia, the capital of the Brazilian state of Bahia, as Donald Duck, José Carioca, and Pooh and his friends met up with some of the locals who danced a lively samba and Donald pining for one of the females.
- Las Posadas was the story of a group of Mexican children who celebrated Christmas by re-enacting the journey of Mary, the mother of Jesus and Saint Joseph searching for room at the inn. "Posada" meant "inn", and they were told "no posada" at each house until they came to one where they were offered shelter in a stable. This led to festivities including the breaking of the piñata, which in turn lead to Donald Duck trying to break the piñata as well.
- Mexico: Pátzcuaro, Veracruz and Acapulco Panchito gave Donald, Jose and Pooh and his friends a tour of Mexico on a flying sarape. Several Mexican dances and songs were learned here. A key point to what happened later is that Donald seemed to be a "wolf" to the ladies again, hounded down every single one he saw, and tried to gain return affections, but failed.
- You Belong To My Heart The skies of Mexico resulted in Donald falling in love with a singing woman. The lyrics in the song itself played parts in the scenarios as to what was happening as well.
- Donald's Surreal Reverie A kiss, or several to be exact, lead to Donald going into the phrase "Love is a drug." With Pooh and his friends following him, Donald constantly envisioned sugar rush colors, flowers, and Panchito and Jose popping in at the worst moments. The scene changed after Donald and the others managed to dance with a girl from the state of Oaxaca, from the Isthmus of Tehuantepec. The seven danced to the song "La Sandunga." The girl began by singing the song, with Donald "quacking" out the rest of the chorus. The "drunkness" slowed down for a moment, but sped up again when a Mexican girl used a conductor's stick to make a cactus do just about anything while dancing "Jesusita en Chihuahua", a Mexican Revolution trademark song. This was a notable scene for live action and cartoon animation mixing, and well animation among the cacti. The scene was interrupted when Panchito and Jose spiced things up, and Donald ended up battling a toy bull with wheels on its legs. The catch was that it was loaded with firecrackers and other explosives.
- This is the first time that Toonguy500 has written a Winnie the Pooh crossover movie with a package film from Disney.
- Toonguy500 had only written half the last segment in which his half ended with Donald and Pooh and the others in the Desert and Donald said, "What's happening? Where are we?" and Pooh answered, "We seemed to be in a Desert". What happened was Toonguy started to ran out of ideas on the last part of the film so DisneyJSman filled in for him on the last part.
- This film also included a short film called Pooh's Adventures of Aquarela do Brasil, which actually shows Donald and Pooh and his friends meeting Joe Carioca for the first time.