In an attempt to make some extra money, Baloo buys a plane load of junk that he intends to fix and polish up to sell on for profit. In doing so, he inadvertently purchases Captain Onetoomany's old sea chest. During the flight home, they discover the chest contains Ignatz, Onetoomany's parrot, but Baloo is less than happy about his stowaway and develops an immediate dislike for the bird.
Meanwhile, having tracked down the location of the chest, the Air Pirates aren't pleased to find it has been sold on to Baloo. It doesn't take long for Mad Dog and Dumptruck to catch up with them and force Baloo to land. The pirates destroy Baloo's cargo while searching for the chest, but leave the parrot, wrongly assuming Karnage won't be interested in it. As it turns out, Ignatz knows the location of Onetoomany's treasure and promises to help Baloo and Kit find it to pay for the damage to their cargo. Baloo is skeptical, but is forced to act when Kit and Ignatz decide to go it alone.
Don Karnage and his gang follow the treasure hunters into Carlsbear Caverns and kidnap Kit. Despite Ignatz's advice, Baloo still refuses to trust the bird and manages to set off one of Onetoomany's traps. As the caverns crumble around them, everyone is forced to make a hasty exit. In the confusion, Baloo rescues Kit and they fly out of the mountain as it collapses behind them - the treasure lost forever.
Back in Cape Suzette, Baloo searches through the want ads in the paper trying to raise the money he still needs to pay Rebecca. A wealthy Ignatz returns after signing on with the Museum of History and offers them enough money to cover the damage. Baloo concludes that perhaps the bird wasn't quite so bad after all.