The term 'COLORFUL PARROT' can be broken down into two crossword solutions: LORY (4 letters) and MACAW (5 letters). A LORY is a type of parrot native to Australia and Indonesia, known for its bright colors and ability to feed on nectar and pollen. Macaws are large, colorful parrots native to Central and South America, with some species having a wingspan of up to four feet. Both lories and macaws are popular as pets due to their intelligence and vibrant plumage.