The morning starts with a beautiful sight – hot air balloons floating above the Heelers’ house. Bluey wakes up and finds her bag of balloons under her bed. She picks up her last balloon, blows it up, and pretends it’s a pet “bird” that squeaks and zips around the room as she sets it free. Chilli suggests they play a game of “Keepy Uppy” instead, where they have to keep the balloon in the air without letting it touch the ground.
The girls are excited to start playing and jump all over the settees’ to keep the balloon up. At first, they hit it enthusiastically, but then they decide to make it easier by only doing small hits. However, they soon get bored with that and want a new challenge. Bandit arrives and makes the game harder by pretending to read the newspaper to Bingo and hugging Bluey, making it harder for the girls to hit the balloon. He then turns on the fan and the leaf blower, and the balloon gets pushed into the playroom full of toys. The building block tower saves the balloon for a moment, but when Bandit turns the fan on again, it floats outside.
The balloon goes over into the next-door neighbor’s yard, and Lucky and his dad, Pat, join in to help return it to the Heelers’ yard. In the process, Pat gets injured. Eventually, the balloon lands on the grass and pops, making the girls sad. Bandit apologizes for making the game too intense, but the girls and Lucky agree it was a lot of fun. Chilli tells them they have one more balloon left, and Bandit accepts his comeuppance. They blow up the “Daddy balloon” and release it, and as it collapses, the whole family laughs together.