A rare blue macaw named Blu is captured from his home in the Brazilian rainforest and smuggled to the United States. He ends up in Moose Lake, Minnesota, where he is adopted by a kind bookstore owner named Linda. Despite Blu’s inability to fly, he lives a comfortable and sheltered life with Linda. One day, an ornithologist named Tulio arrives, informing Linda that Blu is the last male of his kind and must go to Rio de Janeiro to mate with a female macaw named Jewel to save their species. Reluctantly, Linda agrees to take Blu to Rio.

Upon arriving in Rio, Blu and Jewel are kidnapped by a group of smugglers who plan to sell them for a high price. Although Blu's domestic upbringing leaves him rather inept at survival, he and Jewel manage to escape their captors. They embark on a thrilling adventure through the city and the rainforest, encountering a colorful array of characters, including street-smart birds and mischievous monkeys. Along the way, Blu must confront his fear of flying and learn to trust Jewel if they are to evade the smugglers and ensure the future of their species.