Elmo imagines himself as an iguana, singing and lounging on a rock in the dessert. He meets another, Spanish-speaking iguana, who's upset because she's missing her grandmother's birthday. Elmo takes them to Mexico using the power of imagination and they start comparing houses to the iguana's photo of her grandmother's house. They come across the homes of an elderly parrot and horse, who help them on their journey. Eventually, they find the right house, just in time for a fiesta!
