When Donald Duck inherits a cabana from his great-grandfather Clinton Coot in the New Quackmore Institute alongside Brazilian parrot José Carioca and Mexican rooster Panchito Gonzalez, they discover a magical book that when opened releases a goddess named Xandra. The goddess explains that Donald, José, and Panchito are the descendants of a trio of adventurers known as The Three Caballeros, who long ago traveled to stop the evil sorcerer Lord Felldrake from taking over the world and ultimately sealed him in a magical staff. Meanwhile, the staff containing Felldrake is discovered by his descendant Baron Von Sheldgoose, the corrupt President of the New Quackmore Institute. As Sheldgoose sets out to revive Felldrake, the new Three Caballeros must learn to become heroes to save the world from disaster.