yes there is chao in this game. First you have to beat the game with one charector and collect all seven chaos emeralds. Then you go in the menu and go to tiny chao garden. There you will see an egg. Hatch the egg, give it animals and fruit, and help it grow. Make it happy and it will say nice things to you!
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If you raise a chao, raise it kindly and treat it as a pet. Of course you should listen to chao experts.
'Character'