Baloo and Kit buy junk from a hangar sale on a high atoll. A hangar sale is like a garage sale where a property owner tries to clear space by selling unwanted items. Kit wonders why Baloo is buying so much useless junk. Baloo responds that there could be treasure hidden among all of the items. He hopes that he can hit it rich and buy back his plane from his boss Rebecca Cunningham. He starts cramming his recently purchased stuff into the back of his plane, the Sea Duck. The rear hold of the plane is full to bursting, and Baloo accidentally dislodges a crate. It falls with Kit checking its contents. Kit states that the box carries delicate glassware for their boss. Baloo says he will be careful and finishes loading the back of the plane. They skid along the runway and cannot get enough airspeed to get the lift required to take-off. The plane is too laden with junk. They dive off the cliff on the island and speed towards the water. The diving gives them the speed to have a level flight.
Two air pirates land on the atoll. They grab the old goose proprietor of the hangar sale and demand to know where the treasure chest of the pirate Captain Wantoomany is. The goose says that he sold the box to the captain of the plane that just departed—the Sea Duck. The pirates release the proprietor and hop in their planes. They rush off after Baloo's plane. On the Sea Duck, Baloo reclines and talks about how he is a soon-to-be-rich genius. He and Kit hear someone talking from the hold. They think it is a stowaway. Baloo does not like the idea of a stowaway on his ship, so he storms into the hold, knocking over crates of recently acquired junk. The voice of the possible stowaway heckles Baloo and Kit. Baloo digs through the stacks of knick-knacks, gingerly puts Rebecca's delicate glass aside, and comes across a large chest. He opens the chest. Inside is a parrot in a cage. The parrot mocks Baloo but likes Kit. Kit takes the parrot out of the cage, and it lands on his head. The parrot introduces itself as Ignatius, or Ignats to his friends. The voice of one of the air pirates booms over a loudspeaker. The air pirates for down the Sea Duck.
On the ground, the pirates search the hold for the chest. They toss things haphazardly around and destroy Rebecca's glass. The pirates eventually find the chest they seek and depart. Baloo complains that they could at least take the annoying parrot as well. They recollect their junk and continue back to Cape Suzette. Baloo says that at least when he uses the air pirate excuse he will be telling the truth this time.
Baloo lands at the Higher for Hire docks and uses the air pirate excuse. Rebecca does not believe his excuse for destroying her shipment and being late. She goes through the junk he bought at the hangar sale and is unimpressed. She slams a lampshade over Baloo's head. He says that he is telling the truth, but Rebecca walks off, angrily. Kit talks to Ignats. Kit apologizes to the parrot about Baloo's behavior. He says that he is only so rude when money is involved. The parrot explains that if money is a concern he knows the location of huge piles of treasure. Kit asks how the parrot knows this information. The parrot goes on to say that his previous owner, Captain Wantoomany, did not trust maps and made Ignats memorize the location of all the treasure troves. Ignats can recall this information and tell his owners. Kit is excited and rushes over to tell Baloo about his discovery. Baloo and Ignats still do not get along. They exchange barbs over appearance, weight, and general likeability. Kit tries to mediate their feud, but Baloo reignites it when Ignats calls him stupid. Baloo says he will find another way to get the $500 Rebecca says is owed to her. Baloo gets a crazy look in his eyes and thinks that Kentucky Fried Parrot would make a profit. He dives for the parrot, but Kit moves the parrot's cage. Baloo dives into the water to stew in his fury.
On Pirate Island, Don Karnage inspects the contents of the chest that his underlings have brought him. It is filled with old clothes. The pirates hopefully state that they are nice old clothes. Don Karnage is not as impressed with the moth eaten clothes. He asks if there was anything else in the chest. The pirate named Mad Dog explains that there was an old, annoying parrot that did bad impressions and insulted everyone. He goes on to state that he specifically instructed the other pirate to leave the parrot. Don Karnage is incensed. He tells the pirates about the parrot's memory and the locations of the treasure. The parrot is "living, breathing treasure map." Don Karnage slaps his underlings for a while. They also slap each other. Nobody learns anything from the exchange of pain. The pirates ask Don Karnage knows so much about the parrot. Don Karnage says that Don Karnage is a master air pirate. Don Karnage knows all. Then he admits that he stole Captain Wantoomany's heart-diary. The air pirate captain orders his crew to steal the parrot. They scramble to find and retrieve the parrot.
At night, at the Higher for Hire docks, Baloo still worries about owing Rebecca $500. He reads the want ads and classifieds of a newspaper for money making possibilities. He finds several joke ads for a podiatry franchises other silly businesses. Kit tries to calm Ignats and get the parrot and Baloo to reconcile. Kit says that Baloo's money troubles would be over if Baloo listened to Ignats. Baloo states he will never listen to the bird. He goes muzzle to beak with the bird in an angry stare down. Behind a building, the two air pirates find the bird and come up with a plan to take it. The larger, more Norwegian sounding of the two pirates is placed in a nerdy, tourist disguise with binoculars. He asks the pirate-in-command what he is supposed to be. The pirate Mad Dog says that the disguise is of a birdwatcher. The bird watching pirate is handed a bird guide and told to sound believable as a bird enthusiast. The bird watching pirate heads down to the docks and greets Baloo, Kit, and Ignats. He says that the parrot is wonderful specimen of "birdiness" and that he would like to buy him. Baloo is very interested and wants to get the right price for such a spectacular bird. Kit tries to keep Baloo from selling the parrot because of the possibility of treasure. Baloo does not believe the parrot knows anything and thinks the parrot is trying to extort them for free room and board. Baloo takes the disguised pirate into the Sea Duck to discuss the price. Ignats pleads with Kit to not let him get sold. Kit says that they need the money. Ignats suggests that they go and retrieve the treasure themselves. This way they can make Baloo happy whether he wants to be or not. Kit agrees to the plan and takes Ignats out of his cage. kit scribbles a note on a piece of torn newspaper and leaves it in the cage. Kit and Ignats then set out on an adventure. Baloo and the disguised pirate come out of the Sea Duck. They have struck a deal for the parrot. Baloo calls for kit to bring Ignats, but Kit does not respond as he is no longer present. Baloo becomes desperate and shouts louder for Kit. There is still no response. Baloo notices the note left in the birdcage. He reads it, and it states that Kit has gone to Tucker Forest to find the treasure. Baloo is worried.
Kit and Ignats air surf on a cloud board behind a cargo plane using a tow rope. When Kit reaches the Tucker Woods, he drops down and glides to the forest floor. Kit asks the parrot where the treasure is located. Ignats says that the treasure is buried in Carlsbear Caverns. Kit asks where the caverns are, and Ignats says he needs to get his bearings. Ignats paces the ground in attempt to remember the correct path. Before they can set off for the treasure, the air pirates arrive. Kit and Ignats try to run. Kit pulls back a tree branch and hits the pursuing pirates with it, but the chase soon ends. Don Karnage grabs Kit, and he order the other pirates to grab the bird. The two other pirates dive for the parrot and kick up a cloud of dust. They do not grab Ignats as the parrot flies away to get help. When the dust settles, the two pirates catch each other. Don Karnage is disappointed in the general ineptitude of his crew. He decides to interrogate Kit for the information. Don Karnage thinks that the parrot must have told Kit something about the location of the treasure. Kit pretends to not know anything about any treasure. Don Karnage says he is going to resort to torture now.
Ignats flies through the trees and runs into Baloo and the Sea Duck parked in a clearing. Baloo calls for Kit as Ignats arrives. The two squabble over who is to blame for Kit running off to the forest. Baloo admits he is to blame for not listening to his friend and driving him to looking for treasure in order to help Baloo. Ignats says he has a plan. Baloo reluctantly agrees to help save Kit even through Ignats' insults. The two head towards the location that Ignats last saw Kit. Baloo and Ignats approach the clearing. They hear Kit giggling. Kit is tied to a tree and being tickled by a feather. Baloo wants to do something, but Ignats says they need a diversion. Ignats shouts that Baloo is here to rescue Kit and has the parrot. Don Karnage listens to this mysterious voice and orders his pirates to attack Baloo. The pirates dive into the bush where Baloo is hiding and begin to beat him. In the process or running over to Baloo, they trample Don Karnage, leaving him a little woozy. Ignats bites the rope off of Kit, and they make their escape. Ignats lands on Don Karnage's shoulder and whispers to the pirate captain that Kit has escaped. Don Karnage calls for his pirates to drop Baloo and come to him. Baloo, Kit, and Ignats run to the Sea Duck. Don Karnage has multiple vision and gives confusing orders to his crew.
Baloo, Kit, and Ignats fly towards Cape Suzette with the pirates pursuing in their planes. Ignats suggest that they head back to Carlsbear Caverns and retrieve the treasure. Baloo says the idea is crazy. Ignats points out that once they get the treasure they could part paths amicably and never see each other again. Baloo likes this idea and heads back into the forest. Baloo performs a series of maneuvers that cause the pirates to temporarily become entangled in the trees. Don Karnage vows to severely injure Baloo the next time they meet. Ignats points to a cave whose entrance appears like a bear's head. Baloo flies into the cave, and the pirates follow. The rock columns cause the pirates to crash. There is a wall ahead, and Baloo quickly climbs above it. Don Karnage sees the wall too late and crashes. He thinks it is a stupid place for a wall. Baloo lands the plane, and the group sets out to find the treasure.
Ignats leads them to two tunnels that lead to the treasure. The parrot suggests they take a smaller, parrot sized tunnel. Baloo wants to take the larger tunnel, but Ignats says that it is rigged with traps. Baloo does not listen and immediately triggers a trap. The earth trembles and a chasm opens between Baloo and Kit. Kit is then captured by the pirates. The pirates demand Baloo return the bird in exchange for the boy. Ignats tells Baloo they should get the treasure, but Baloo wants to save Kit. Ignats says that Baloo never listens. The soil beneath Baloo collapses, and he slides down a rock formation shaped like a slide. He lands in a giant horde of treasure. Ignats arrives and says they found the treasure. After arguing about nothing in particular, Baloo and Ignats team up to save Kit.
Baloo and Ignats climb back up to the cave where the pirates hold Kit. Ignats says they need to find a way to stop the pirates before they trigger the big trap left by Captain Wantoomany. Baloo says that someone would have to be a complete idiot to trigger such a trap. Baloo then triggers the trap. Parts of the cave ceiling collapse and cause the pirates to scramble for cover. They release Kit after they accidentally steep on each others' toes. Kit runs to Baloo and Ignats, but Don Karnage grabs him before they can reunite. The other pirates join Don Karnage. They say that something bad will happen if they do not immediately get the treasure. A trap door opens below them, and they drop. Baloo catches Kit before they fall. The group then heads back to the Sea Duck and escape the collapsing cavern system. Don Karnage and his pirates sprint out of the mountain before it collapses entirely. Kit is disappointed that, after everything they went through, they did not get the treasure. Baloo is happy that everyone is still alive. They return to the Higher for Hire docks.
Baloo and Kit sit on the pier in front of the Sea Duck. Kit fishes while Baloo reads the newspaper for money making opportunities. He finds none. Ignats flies down to meet them. He now wears a suit and hat. Kit asks where he got the money for the suit, and Ignats explains that he sold his story, especially saving Baloo, to the museum of natural history. He is a permanent fixture that greets guests. It is a high paying job. He tosses $500 to Kit and tells Baloo to take care of his friend Kit. Kit gives the money to Baloo and asks how Baloo feels about birds now. Baloo responds that he will never eat fried chicken again.
- Ed Gilbert as Baloo
- R.J. Williams as Kit Cloudkicker
- S. Scott Bullock as Ignatius
- Jim Cummings as Don Karnage
- Charlie Adler as Mad Dog
- Chuck McCann as Dumptruck
- Sally Struthers as Rebecca Cunningham
Home video release
- TaleSpin: Treasure Trap
- TaleSpin: Baloo Skies (Foreign release)
- TaleSpin: Treasure Trap/Imagine That!
- TaleSpin: Volume 1
- TaleSpin: First Collection (Foreign release)