The film consists of several segments, connected by a common theme. In the film, it is Donald Duck's birthday, and he recieves three presents from friends in Latin America. The first present is a film projector, which shows him a documentary on birds. During the documentary, he learns about the Aracuan Bird.
The next present is a book given to Donald by José Carioca himself. This book tells of Bahia, which is one of Brazil's 26 states. José shrinks them both down so that they can enter the book. Donald and Jose meet up with several of the locals, who dance the samba. Donald ends up pining for one girl. After the journey, Donald and Jose leave the book.
Upon returning, Donald realizes that he is too small to open his third present. Jose shows Donald how to use black magic to return himself to the proper size. After opening the present, he meets Panchito Pistoles, a native of Mexico. The three take the name "The Three Caballeros" and have a short celebration. Panchito then presents Donald's present, a piñata. Pancho tells Donald of the tradition behind the piñata. Jose and Panchito then blindfold Donald, and have him attempt to break open the piñata, which eventually reveal 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).
Throughout the film, the Aracuan Bird appears at random moments. He usually pesters everyone, sometimes stealing Jose's cigar. His most famous gag is when he re-routes the train by drawing new tracks. He returns three years later in Disney's Melody Time.
- The Cold-Blooded Penguin involved a penguin named Pablo, reproducing images of the penguins of Punta Tombo in Argentina 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: Tells the adventures of a little boy from Uruguay and his winged donkey, Burrito. It is believed the donkey is modeled after hefty Latin lover Don Juan De Gama.
- Baia: involves a pop-up book trip through Baia the capital of the Brazilian state of Bahia, as Donald Duck and José Carioca meet up with some of the locals who dance a lively samba and Donald starts pining for one of the females, played by singer Aurora Miranda.
- Las Posadas: 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" means "inn", and they are told "no posada" at each house until they come to one where they are offered shelter in a stable. This leads to festivities including the breaking of the piñata, which in turn leads to Donald Duck trying to break the piñata as well.
- Mexico: Pátzcuaro, Veracruz and Acapulco: Panchito gives Donald and Jose a tour of Mexico on a flying sarape. Several Mexican dances and songs are learned here. A key point to what happens later is that Donald seems to be a "wolf" to the ladies again, hounds down every single one he sees, and tries to gain return affections, but fails.
- You Belong To My Heart: The skies of Mexico result in Donald falling in love with a singing woman. The lyrics in the song itself play parts in the scenarios as to what is 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." This scene is similar to "Pink Elephants on Parade," for being a major "drunk" scene. Donald constantly envisions sugar rush colors, flowers, and Panchito and Jose popping in at the worst moments. The scene changes after Donald manages to dance with a girl from the state of Oaxaca, from the Isthmus of Tehuantepec. The two dance to the song "La Sandunga." The girl begins by singing the song, with Donald "quacking" out the rest of the chorus. The "drunkness" slows down for a moment, but speeds up again when a Mexican girl uses a conductor's stick to make cacti do just about anything while dancing "Jesusita en Chihuahua", a Mexican Revolution trademark song. This is a notable scene for live action and cartoon animation mixing, and well animation among the cacti. The scene is interrupted when Panchito and Jose spice things up, and Donald ends up battling a toy bull with wheels on its legs. The catch is that it's loaded with firecrackers and other explosives
- the late Clarence Nash as Donald Duck (also dubbed the Spanish and Portuguese versions)
- the late José Oliveira as José Carioca
- the late Joaquin Garay as Panchito Pistoles
- the late Sterling Holloway as the Narrator (The Cold-Blooded Penguin)
- Frank Graham - Narrator
- Fred Shields - Narrator
- Carlos Ramírez (singing voice) - Mexico
- The film was release on DVD combine with Saludos Amigos on April 29, 2008 (DVD - Classic Caballeros Collection).
all information on the Thre Caballeros came from http://disney.wikia.com/wiki/The_Three_Caballeros