Coco is a six-year-old girl deeply fascinated by penguins. She often wears a distinctive penguin costume, a cherished gift from her deceased father symbolizing their bond. He told her stories of penguins flying, leading her to believe she could fly too, despite mockery from other children. After bullies taunt her about penguins' inability to fly, she attempts to fly herself and falls. During the fall, she discovers a golden feathered wing and a penguin-shaped capsule containing parts for a robotic toy cat. This robot transforms into a goblin named Chaley, who guides her to a hidden store filled with penguin merchandise.

Chaley reveals Coco is the prophesied "flightless bird" destined to save his world from peril. She is transported to a fantasy land inhabited by goblins, threatened by an evil entity named Buccaboo and his henchmen. Initially doubting her role as a bird and requesting to go home, Coco becomes suspicious of Buccaboo's lead henchman, Zammie. She investigates Buccaboo's motives with Chaley, discovering Zammie is a fallen angel who lost one wing and is exploited by Buccaboo for his heavenly powers.

Coco and Chaley help Zammie escape, aiming to retrieve his missing wing so he can return to heaven and strip Buccaboo of power. To reach the wing, Coco must fly. Drawing on memories of her father, she summons his spirit, which grants her flight. She also receives aid from her grandfather and deities represented by a statue from her world. After Buccaboo's defeat and Zammie's return to heaven, Coco returns home. The hidden penguin store vanishes, Chaley reverts to his robotic cat form, and her grandfather is memorialized alongside the statue.