Elmo imagines he's a bird; his Mama Bird puts him in charge of watching her egg. Elmo Bird can't go play with his bird friends, when another bird teaches him a dance he can do while sitting. The dance flings the egg out of the nest, with Elmo in hot pursuit. It lands on a farm, during a "Most Unusual Watermelon" competition at the Cock-a-doodle doo County Fair, where the rooster host declares it the winner, until Elmo Bird explains it's an egg. The rooster tosses the egg away, where it lands in a hat shop, atop a duck's new #5 Hat. Now that it's a #6 Hat, the clerk subtracts it and hurls it away too. It lands at a ballpark, where the chicken pitcher mistakes it for a baseball, until Elmo Bird and the umpire chicken point out the difference. The pitcher throws it back to the nest, where Elmo Bird's new baby brother hatches.
