When Donald Duck, together with Brazilian parrot José Carioca and Mexican rooster Panchito Gonzalez, receives a cabana from his great-grandfather Clinton Coot at the New Quackmore Institute, they discover a magical book that, when opened, releases a deity named Xandra. The goddess tells that Donald, José, and Panchito are descended from a trio of adventurers known as The Three Caballeros who traveled long ago to prevent the wicked sorcerer Lord Felldrake from assuming control of the world and eventually locked him in a magical staff. Meanwhile, Baron Von Sheldgoose, the corrupt President of the New Quackmore Institute, discovers the staff holding Felldrake. While Sheldgoose is attempting to resurrect Felldrake, the new Three Caballeros must learn to be heroes in order to avert calamity.