Goofy is transplanted from being an old west cowboy to become a gaucho in South America.
In Texas, Goofy (as a cowboy) is transplanted from being an American cowboy to an Argentine gaucho to experience life as a gaucho in Argentina. Goofy also experiences having a horse just like a cowboy does by lassoing it and tying it on a palenque, making the horse ready for saddle. Goofy then packs a heavy saddle on the horse and then experiences on trying asado (Argentine barbecue). Goofy now tries on using bolas, objects used for sports such as capturing a rhea. Goofy practices using this object on capturing the rhea. The footage then repeats in slow motion and then speeds when Goofy tries to capture the rhea again in which, he, the rhea, and his horse are captured by the bolas.
For nighttime, a gaucho sings a melancholy song in which Goofy plans on singing the traditional song but the narrator says that the gaucho is not always sad, but he does the lively beat of the chacarera, the dance of a farmer's daughter. Goofy experiences the unique music and dancing of what a gaucho does in the Pampas. Goofy is later transplanted as a Texan cowboy back in Texas as he feels satisfied of his experience in the Pampas.
Scenes of Goofy smoking are edited out on the home video release of Saludos Amigos in 2000 (Gold Classic Collection) and 2008 (as part of a double bill with The Three Caballeros). To date, the only home video release to present this film's segment uncensored is as a bonus feature of the Walt & El Grupo DVD.