Inside the UFO is a minor area where the inside of the aliens' UFO is playable. It is used but only twice before flying away. It is first found in the underwater section of Jolly Roger's Lagoon, before entering Atlantis, and the door to enter must be broken with the Talon Torpedo.
The aliens inside the UFO are Alph, Beti and Gammo. They explain to Banjo and Kazooie that their ship has run out of power, which can be helped by fueling it with ice eggs. Once the UFO is fueled, the duo is rewarded with a jiggy and it flies away once exited.
The ship then flies to the icy side of Hailfire Peaks as the aliens look for their kids: Alphette, Betette and Gamette. The ship begins rocking while in mid-air and causes Alph fall off, killing him. The duo (including Mumbo this time) once again help the aliens by reviving Alph and rounding up the alien kids (and reviving Betette as well), and are rewarded with another jiggy. Alph wants retribution for the duo "taking too long" to save the kids, but instead just fly away.
- The soundtrack sounds similar to the Space Zone of Witchyworld.
- When the aliens mouths move when you are not talking to them, it makes the Saucer of Peril's talk sound.
- Because the UFO flies off once it has been activated and the player leaves it, it cannot be reaccessed without hacking. Unlike the Klungo boss areas which will only display their area names if he hasn't yet been defeated and the HAG 1 boss area, this area displays the name on each visit regardless of it's access even after the UFO leaves.