Peisetairos and Euelpides reenter, now winged. They decide on a name for the new city: Cloudcuckooland. Peisetairos directs Euelpides and the birds to begin laying the foundations while he sets out to conduct the rituals and sacrifices for the founding of the new city.

Almost immediately, Peisetairos is accosted by visitors who try to peddle their dubious wares to profit from the new foundation. A Priest arrives, leading a goat, and offers prayers for Cloudcuckooland, but Peisetairos sends him away in disgust, as he also sends away an impoverished Poet offering poems in honor of the city, an Oracle-Monger with a scroll of oracles favoring the city, the city planner Meton, an Inspector from Athens, and a Decree-Seller.

The Chorus sings a second Parabasis. They offer a reward to anybody who harms their enemies, including “Philokrates the sparrow-man” (1076). They then address the judges of the dramatic competition, offering them lavish bribes if they award first prize to Aristophanes and threatening to cover them in bird droppings if they do not.