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The Red Mystery Egg is found in Banjo-Kazooie in the Rusty Bucket Bay level in the Captain's Quarters of the ship, on the Captain's Bed on the pillows.

In Banjo-Kazooie: Nuts & Bolts, when you got this Egg in Banjo-Kazooie (Xbox Live Arcade), a crate appeared under the Uptown District, but requires the Laser to destroy the fence (a crate is also behind the fence). You can find a red Egg in Banjoland, however if you break it open, there is a Gruntbot inside.

In Banjo-Tooie (Xbox Live Arcade), when you got this Egg in Banjo-Kazooie (Xbox Live Arcade), it brings it to a Stop 'n' Swop menu in the game. If you bring the Egg to Heggy the Hen, you will get the Banjo-Kazooie theme for your Xbox 360.