After caring for a couple of birds, PaRappa finds that his hat was used as their nest, and that it has four bird eggs inside it the next day. After the eggs hatch, PaRappa and the gang must find someone to care for the baby birds. In the meantime, PaRappa's hat becomes a fashion statement across town.
PaRappa and friends scramble to clean up the Fruits Dojo when Chop Chop Master Onion returns to town after a long training journey. However, when he gets back, the dojo falls down, so Chop Chop forces his students to clean up the dojo and to do an impromptu karate lesson, which showed that he was around the world to learn specific techniques. After much pestering from Paula, Chop Chop shows her to do "the Kilimangyro Chop". As she runs home, her friends follow her and find out that she learned it so she could slice oranges to make marmalade.
PaRappa and friends visit a sushi shop, unknowing that is really a cover-up by Gaster and Groober to steal the next door bank's money. Through some unfortunate consequences, the money ends up getting blown up. Now PaRappa and company have to do all they can to keep all the bank's customers calm whilst a new shipment on money comes in.
Dorothy, who wanted to become friends with Katy, wants to become a dancer once again; however, she feels that she cannot because she is old. Katy and her friends find out that the theater is about to be taken down, so PaRappa and his friends fix everything up for Dorothy to have one last dance on stage.
PaRappa attempts to reconcile two different promises he made with two different friends. First, he tells his buddy PJ and PJ's friend Matt that he'll play basketball with them on this particular day, but also tells Katy and Sunny that he'll go with them to Sister Cone's garage sale. Things get worse when Paula shows up and angers Katy by questioning her fashion sense. Gaster also further ruins PaRappa's day by stealing his bike and the money from the garage sale.