The parakeet is a character who appears in Sandy's dream in the episode "Sleepy Time."
The parakeet is a species of bird that is light green in color. It is also shown to have blue eyes and a red beak.
The parakeet is briefly seen during Sandy's dream sequence when SpongeBob holds it out while he and Sandy are falling from the sky. SpongeBob thinks Sandy said to bring a parakeet when she actually meant a parachute. However, SpongeBob cannot hear correctly due to the rate they are falling.
It is implied SpongeBob owns this parakeet, but he hasn't been seen in any episodes outside of Sandy's dream in "Sleepy Time." It is unknown how he got or keeps the parakeet or how it interacts with Gary and Shelley.