In Brazil, wildlife trade is common, and several types of exotic birds get smuggled to different countries. Tyler Blu Gunderson, a male blue macaw who has been smuggled from Rio de Janeiro, lives in the suburb of Moose Lake, Minnesota with his owner Linda Gunderson. Blu is constantly ridiculed by local animals due to his inability to fly.
At the Disney Castle, Natsumi and Fuyuki are going to Rio for a family vacation and invites Sonic and his friends to go. But June and Thomas started an argument about another girl being with him and they are driving Nancy crazy.
One day, Brazilian ornithologist Túlio Monteiro asks for Blu to be taken to Rio, telling Linda that Blu is the last male of his species and he must mate with another macaw in Brazil. Linda takes up Túlio's offer and the three are flown to Rio, where Blu meets a Red-crested Card named Pedro and his Yellow Canary friend Nico. Then Blu meets Sonic and his friends. June and Thomas are still arguing. Shadow handcuffs them and gives the keys to Nancy until they stop arguing and apoligies. Sonic, Blu and the others are taken to Túlio's aviary and Blu falls in love with Jewel, a macaw who desperately longs to escape into the wilderness. Blu and Jewel are captured by a young boy named Fernando and a Sulphur-crested Cockatoo named Nigel, both of whom work for a group of smugglers led by Marcel. Sonic and the others runs off to rescue Blu and Jewel, but they were captured. Nigel tells Sonic, his friends, and the macaws that he was once a popular performer on a television program and vows to smuggle exotic birds for being replaced by a parakeet on the program. Blu and Jewel and Sonic and his friends flee from Nigel and the smugglers, ending up in a jungle.
Having realized his error, Fernando cooperates with Linda and Túlio to find Blu. Sonic, his friends and the macaws meet a Toco toucan named Rafael, who offers to take them to his bulldog friend Luiz to remove a chain connected to their legs. He also tries to teach Blu how to fly, before the heroes meet Pedro and Nico. Nigel hires a horde of thieving marmosets led by Mauro to capture Blu and Jewel. Pedro and Nico take Blu and Jewel and Sonic and his friends to a bird's Rio-style funk dance party, where they perform a duet, then June, still handcuffed to Thomas, performs Shakespeare, but Sonic and his friends are attacked by the marmosets. Sonic, his friends, and their bird friends, including a Roseate Spoonbill named Kipo, fight them, allowing the heroes to escape. Linda and Túlio, with Fernando's help, are taken to the smugglers hideout. While there, Marcel explains that he will use the Carnaval festival to kidnap Blu and Jewel.
Meanwhile, Blu, Sonic, and the others meet Luiz. Luiz manages to release the chain holding Blu and Jewel using his drool. Blu gets into an argument with Jewel, and they decide to go their separate ways. June and Thomas finally realized that the argument they have each other is ruining their friendship. Sonic and the others split up to get Blu and Jewel. Sonic, Rafael, Dororo, Nancy, June, Thomas, Sakura, and Aqua go find Blu and Koyuki, Oswald, Shadow, Keroro, Natsumi, Fuyuki, Daffy, Conan, and Rachel go find Jewel. Sonic and the others found Blu. June and Thomas told Blu to go be with Jewel and apoligies about the argument and they should have apoligies in the first place. When Blu and Rafael and Sonic and the others learn from Pedro and Nico that Nigel captured Jewel, Koyuki, Oswald, Shadow, Keroro, Natsumi, Fuyuki, Daffy, Conan, and Rachel. The heroes rush to the Carnaval to rescue Jewel and Sonic's friends, while Linda and Túlio organize a rescue attempt on the birds.
While Linda and Túlio pose as dancers at the Carnaval, Marcel enacts his plan, using Nigel to capture the birds before taking them to his Short SC.7 Skyvan. Blu and Jewel help to free the rest of the birds while Sonic and Shadow go super to fight Nigel. However, Nigel attacks the macaws - injuring Jewel and pinning Blu - but gets caught into the fan of Marcel's aircraft's engine, causing the smugglers to bail out. Sonic and Shadow used Chaos Control to teleport the plane to safety. The injured Jewel falls out of the ruined plane, but Blu dives off to save her. She kisses him in midair, and Blu finally discovers that he is able to fly. June and Thomas finally apoligies for the argument. Nancy unlocks the handcuffs freeing June and Thomas. Some time later, Linda, Túlio and Fernando set up a sanctuary to protect the jungle from smugglers. Blu and Jewel raise three chicks together and reunite with their bird friends in the jungle, Nigel is ridiculed for his loss of feathers, and the smugglers are sent to jail. Sonic and his friends return to Disney Castle. Thomas ask June for a walk to the garden. Nancy ask Sonic if Thomas and June will ever fall in love. Sonic thinks they will.
- It idea was cameron33268110 and was her first project
- Guset Starring: Dororo, Koyuki, Sakura, Daffy, Fuyuki, Natsumi, Keroro, Oswald, Aqua, Conan, Rachel
- June and Thomas will be handcuffed during the whole movie
- June will sing Shakespeare on stage since she is the voice of Miranda Cosgrove
- Pedro and Nico joined Sonic's team after the events of Sonic's Journey to Noah's Ark (Cameron33268110's Sonic Team)