A lazy anteater tricks Timon and Pumbaa into competing over who can catch the most bugs.
"Paraguay Parable" begins by introducing Timon, a meerkat, and his warthog friend, Pumbaa. At the start of the episode, after Timon and Pumbaa catch a bug, an anteater, however, eats the insect, much to Timon's annoyance. The anteater asks Timon and Pumbaa to bring him more bugs since he's too lazy to catch some himself.
Timon tells the anteater that catching bugs is not as easy as he thinks, but the anteater convinces the meerkat that he's the best bug catcher in the whole universe, much to Timon's embarrassment. He then convinces Pumbaa that he's better at catching bugs than Timon. Timon starts to disagree, saying that Pumbaa could not catch bugs that easily because of his physical attributes. The anteater the convinces the two to argue over who's better at catching bugs. He then decides to find a way to settle this argument.
The anteater sets up a competition to see who can catch the most bugs on one's own. as the competition begins, Pumbaa suggests that he and Timon should catch bugs together as friends, but Timon insists that they should catch bugs on their own since it's a contest. The warthog reluctantly follows Timon.
After Timon and Pumbaa catch a number of bugs, the anteater counts how many they caught by eating them, much to the two friends' shocks. He tells them that it's a tie, as they both caught 443 bugs. The anteater then tries to convince the two to catch more bugs for a tie-breaker, but Timon and Pumbaa refuse, as they realize that the competition was a fake and that he was actually trying to have them bring bugs for him.
Timon and Pumbaa use a construction vehicle to make the anteater spit out all the bugs. After getting their bugs back, Pumbaa sees that there is one more bug, which is the one Timon caught. He tells his friend that he's the winner of the contest. The anteater then shows up, flattened by the vehicle, saying that he's starving. Timon gives the anteater the bug and he and Pumbaa decide to call the competition even.