Pedro

In Beverly Hills Chihuahua 2, Pedro is actually an illusion felt by each character, and does not exist physically. The reason the illusion of Pedro happens is because prior to the events of the film, each dog drank from the Californian Fountain of Pedro, which permanently gave them all Schizophrenia, and implanted Pedro in their now unstable minds. The fact that Pedro is an illusion is never explicitly stated, but it is alluded to in several fun easter eggs, such as the one time Pedro tried hugging his diseased and old father on his death bed. Since Pedro was not real, he passed right through his father, not being able to feel his touch or hug him lovingly for his last breath, after which Pedro's dad died. This moment in the otherwise perfect movie is often criticised, as the editors felt the need to add a laugh track in the scene.