"Mobile Suit SD Gundam Festival" is a comedic and lighthearted anime series that parodies the broader Gundam franchise, reimagining its iconic mecha and characters in a super-deformed (SD) chibi style. The series is structured as a collection of short, self-contained episodes, each presenting humorous takes on the Gundam universe. The narrative does not follow a continuous storyline but instead offers a series of vignettes that reinterpret key moments, themes, and characters from various Gundam series.

The SD Gundam characters retain their original personalities and roles but are depicted in a more exaggerated and comedic manner. For example, Amuro Ray, the protagonist of the original "Mobile Suit Gundam," is portrayed as a bumbling yet determined hero, while Char Aznable, his rival, is reimagined as a scheming but often comically inept antagonist. The series frequently breaks the fourth wall, with characters acknowledging their SD forms and the absurdity of their situations.

The episodes often revolve around slapstick humor, absurd scenarios, and playful references to Gundam lore. Battles between mobile suits are transformed into over-the-top, cartoonish confrontations, with exaggerated attacks and comedic outcomes. The series also includes parodies of famous Gundam tropes, such as the Newtype phenomenon, the rivalry between Earth and space colonies, and the dramatic sacrifices often seen in the franchise.

In addition to its comedic elements, "Mobile Suit SD Gundam Festival" occasionally incorporates moments of homage to the original series, celebrating the legacy of Gundam while poking fun at its more serious aspects. The series serves as a light-hearted companion to the mainline Gundam entries, offering fans a chance to see their favorite characters and mecha in a completely different, humorous context.