Factual error: During the song where Mowgli and Balo are dancing together with other animals, there are several hippopotamus also dancing. This is impossible, as hippopotamus are native to Africa, and the movie is set in India.
Continuity mistake: When Shanti rubs the war make-up off Ranjan's face, she only rubs half the make-up off. In the next shot, all the make-up is gone.
Plot hole: In the first Jungle Book movie, the role of the vultures is that they do not seem to be hesitant when helping the boy, Mowgli in need of help from Shere Khan. However, in this movie, when their obnoxious vulture friend is attacked by Shere Khan, they do absolutely nothing to help him and in fact, fly away cowardly. Did they suddenly lose all of their courage?
Continuity mistake: When Mowgli is singing Jungle Ryhthm in the village he takes the basket of fruits from Shanti and keeps it away from her. In the next aerial shot neither Mowgli nor Shanti is holding a basket, it just disappeared.
Factual error: They don't have coconuts in India, where the film is set, and yet Baloo finds some.
Continuity mistake: When Ranjan launches into Mowgli with the hammock, the ropes tying the hammock to the pole come undone. Only a few seconds later, however, not only is the hammock still tied up but it is completely still as if nothing happened to it.
Continuity mistake: In the first Jungle Book movie, King Louie's temple gets completely destroyed. However it's totally intact in this movie. There was no time to rebuild it.