An orphaned baby elephant goes to live in the city with an old lady who gives him everything he wants, but eventually returns to the forest where he is crowned king of the elephants.
While on summer vacation, Babar's monkey friend, Zephir, goes fishing and accidentally catches a mermaid, then enlists her aid in saving Princess Isabelle, who has been kidnapped by a horned monster.
Babar pays an official visit to Washington, D.C., then travels around the United States, receiving an honorary degree from Harvard University, fishing in Lake Michigan, and touring California with his family.
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.
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.