George, now living with Ted in his apartment in
New York City, hears in the newspaper that the great magician, Piccadilly, is putting on a magic show with a kindhearted elephant named Kayla. He attempts to show Ted the news, but Ted is running late to a meeting with Mr. Bloomsberry. Unfortunately Mr. Bloomsberry is retiring and tells Ted he is the only candidate to replace him as head of the museum because he couldn’t imagine not even leaving his son Junior (who is now working as a cashier at a parking lot) to run the museum. on condition that Ted write a presentation on his vision for the museum, to be delivered in one week to the Board of Directors. Maggie tells Ted his loved ones need more attention than his career, so Ted takes George to the magic show. When Piccadilly makes Kayla disappear, George goes looking and finds her in the basement. They stumble upon the exit. When Piccadilly finds Kayla missing he calls security led by Danno Wolfe, assisted by Mrs. Fisher. Danno is suspicious of Ted and George. At Ted's apartment George and Kayla see TV coverage of Kayla's home in a
California animal park, with her brother Tonga and sister Layla. Ted finds George and Kayla in the apartment. On their way back to return Kayla, George follows an advertisement for a "California Express" train. Ted can't get them out of the
boxcar before it leaves the station. Danno thinks George and Ted have kidnapped Kayla. When George opens the boxcar door, Ted falls out trying to catch the pages of his presentation. At a small train station Ted calls Piccadilly, but doesn't manage to complete the call which makes Danno even more certain he kidnapped Kayla. Ted catches up with the train on the
stationmaster's motorcycle. Ted, George, and Kayla continue on the train until Kayla's movement causes the boxcar to separate from the rest of the train. When it finally stops a man in a flatbed truck picks them up. Piccadilly, interviewed by Hark Hanson, reveals pictures of George and Ted as Kayla's kidnappers. Ted realizes they have been heading the wrong way and attempts to head them back east again. They spend the night with Dan, a farmer, and his daughter Anna. Ted reads in the newspaper that New York thinks they're kidnappers. Bloomsberry calls, saying he may go to jail. He also reads about Kayla's family. George convinces Ted to take Kayla to her home. Before they can leave, Danno arrives in a helicopter. A pig throws Danno into a rain barrel and Kayla scares the pilot into flying away. George and company escape in an abandoned school bus and arrive at the park where Tonga and Layla are happy to see Kayla, just as Danno turns up and arrests George and Ted and captures Kayla. Flying back to the city, George gets a pair of handcuff keys from Danno and the trio
skydive into New York. Back at the theater everything is fine, except Danno has followed them. Kayla throws him down the trapdoor onto the mattress below. Ted gives his report to the Board of Directors. Initially flustered, he improvises a speech saying that friends are more important than work and makes proposals based on that idea, such as a Father and Son Day. The Board approves his appointment. While George, Ted, and Maggie are at the park setting up a picnic, Piccadilly and Tina arrive and reveal that Tonga and Layla have joined his act, so Kayla and her family are together again. ==Voice cast==