A whimsical blend of live action and animation, "Saludos Amigos" is a colorful kaleidoscope of art, adventure and music set to a toe-tapping samba beat. From high Andes peaks and Argentina's pampas to the sights and sounds of Rio de Janeiro, your international traveling companions are none other than those famous funny friends, Donald Duck and Goofy. They keep things lively as Donald encounters a stubborn llama and "El Gaucho" Goofy tries on the cowboy way of life....South American-style.

For Donald's birthday he receives a box with three gifts inside. The gifts, a movie projector, a pop-up book, and a pinata, each take Donald on wild adventures through Mexico and South America.

Down-on-his-luck Mike Cormack is hired to fly to a Caribbean island to retrieve a missing ruby. On the island, possibly involved with the ruby's disappearance, is his ex-girlfriend.

Scat Sweeney and Hot Lips Barton, two out of work musicians, stow away onboard a ship bound for Rio, after accidentally setting fire to the big top of a circus. They then get mixed up with a potential suicide Lucia, who first thanks them, then unexpectedly turns them over to the ship's captain. When they find out that she has been hypnotized, to go through a marriage of convenience, when the ship reaches Rio, the boys turn up at the ceremony, in order to stop the wedding, and to help catch the crooks.

Every Tuesday, Claudine goes to a mountain hotel to meet men passing through. When one of them decides to extend his stay for her, Claudine’s daily life is disrupted and she finds herself dreaming of another life.

This is 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" meant "inn", or "shelter", and their parents told them "no posada" at each house until they came to one where they were 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 his own piñata as well.

José Carioca, showing Donald Duck around South America and introducing him to the samba

Panchito gives Donald and José a tour of Mexico on a flying sarape, or magic carpet. Several Mexican dances and songs are learned here. A key point to what happens later is that Donald is pining for some more ladies again, tries to hound down every single one he sees, and gain return affections, but once more he fails every time and ends up kissing José while blindfolded.

This segment involves a pop-up book trip through the Brazilian state of Bahía (spelled Baía in the film), as Donald and José meet up with some of the locals who dance a samba and Donald pining for one of the women, portrayed by singer Aurora Miranda.

The skies of Mexico City result in Donald falling in love with singer Dora Luz.