Babar, his family, and the Old Lady are shipwrecked on what seems to be a desert island, but soon they have made a new friend who calms their fears and introduces them to his pleasant way of life.

Babar's children have all grown up. He and Celeste take them to the Celesteville Games. All the best animal athletes will be there to compete. Babar's daughter Flora falls in love with a young athlete, Corriander, from the country of Mirza. They decide to marry and all of Celesteville is invited.