Caillou discovers something inside him that makes ordinary things fun: imagination! Unable to fly his kite on a windless day, Caillou stares at the clouds and finds they’re really wagons, balloons and dinosaurs, if you look at them just right. When rain grounds his kite another day, Caillou and Dad turn the living room into a pirate ship – with Gilbert shaking the dormant kite like a lively fish. It’s also fun playing with his friend George, who no one can see but Caillou. Meanwhile, the puppets fall into individual reveries about singing, dancing, and conducting an orchestra – then realize they can imagine together, and make a full concert of it!
It's sunrise and the puppets are just waking up. The puppets all see the beautiful sunbeams and it inspires them to use their imaginations. Teddy thinks that it's a magical day, a good to imagine a song. Gilbert imagines he's dancing to music and Rexy pretends that he's conducting an orchestra. Eventually, everyone comes together and they all use their imaginations to put together everything they've been imagining. Caillou is imagining things too, from seeing things in clouds to fantasizing a pretend friend.
"Caillou's Clouds" Mommy, Caillou and Rosie are out at the park having a picnic. Caillou also has another reason to be excited about being at the park - he has a kite that he wants to try out. He tries it, but he can't get it to work. He runs, but it won't fly and he gets to thinking that it's broken. Mommy tells him that it isn't going to fly right now since there really isn't any wind. So they settle down to eat their food and then Mommy pushes Caillou and Rosie on the swings. Caillou watches the clouds in the sky and fantasizes various things, such as a tree, a train and an ice cream cone. He goes to play in the sandbox and then notices that the clouds are beginning to blow away. It's starting to get windy and Mommy reminds him about flying his kite. He goes to get it, but it nearly blows away itself.
