In a prologue, Xandra tells the story of a magical golden atlas, which chronicles an ancient war between good and evil and connects all of these different mythic points together, and how Three Caballeros stood up against a dark sorcerer seeking its power to try and conquer the universe. She realizes she's getting way ahead of herself and takes us to the beginning of the story.
On Friday the 13th, Donald Duck celebrates his birthday, but Donald runs into a spat of bad luck where he loses his job at a barbershop, his house in a fire, and his relationship with Daisy when leaving her alone in a bad part of Duckburg. His luck begins to turn when he discovers that he has inherited his great-grandfather Clinton Coot's estate at the New Quackmore Institute campus. However, he mistakes the address in the letter for the mansion next door, belonging to Institute president Baron Von Sheldgoose, and immediately gets on the wealthy man's bad side.
Donald instead finds that he has inherited the run-down cabana next door. The executor of Coot's estate informs him that he must share the estate with José Carioca and Panchito Pistoles, all three being descendants of a group of knights called the Three Caballeros and are introduced to the cabana caretaker Ari. As they explore the old house and all the antiquities within, they decide to hold a yard sale to make some extra cash, which attracts the attention of Sheldgoose, who offers to buy the whole cabana if they find a mysterious golden atlas. The trio find the atlas and release Xandra, who angrily threatens them.