Once struck by a strong bolt of electricity, it has the power to transfer souls from one physical form to another. Anyone caught looking at the Idol at this moment would switch bodies with whoever closest to him is looking at the Idol as well. The process is reversible, but only within twenty-four hours of the original soul-switching otherwise the victims would remain switched forever.
It transferred the souls of Baloo and Kit Cloudkicker into each other's bodies when it was struck by lightning. Later on in the episode, it transferred the souls of Don Karnage and Rebecca Cunningham into each other when, during a brief struggle, Don caught his tail in a powerplug and got electrocuted. They were all able to get back into their own bodies after another lightning storm, though during said storm it transferred the souls of Mad Dog and Dumptruck into each other's bodies.
Don, while still in Becky's body, dropped the idol because it was hot, and it fell out of the plane, to be lost forever.