Continuity mistake: When Donald says "No teeth!", you can see that the support holding the dragon's head is straight, but in the next shot it is now tilted.
Continuity mistake: When Chip and Dale pick up the metal pipe while they are in the 'dragon' head, you can see there is nothing on the wall when they pick up the pipe, but in the next shot two bolts have appeared.
Continuity mistake: When the "dragon" head on Donald's crane digs up a lump of the ground that Chip and Dale are on, you can see that Chip's hat is on the ground and he is wearing his fake armour when the head swallows them. But when we see Chip and Dale inside the head, Chip's armour and hat have disappeared, and there is also a metal pipe that wasn't there originally.
Continuity mistake: When Chip says "Fairy tales! Phooey!", he slams the book cover down and you can see that Dale is standing by the left corner of the cover, but in the next shot he is now standing by the right corner.
Continuity mistake: When Dale is reading the Fairy Tales book at the beginning, you can see behind him there is an acorn, a small twig and an empty beer bottle behind him. But when he picks up the acorn and twig to pretend fencing, the beer bottle is nowhere to be seen.