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Nose McDonald is a talking nose that resides in the Valley of the Whistling Nose (named as such because of him) in the "Elmo the Musical" segment, "Guacamole the Musical."
In need of a dip for The Queen of Nacho Picchu, Elmo consults the Rhombus of Recipes for a recipe for guacamole. Elmo is led to the Valley, were Nose McDonald helps him collect the 14 necessary avocados needed for the recipe.
He is recycled from the talking nose in "Elmo's World: Noses," albeit with grayer skin and eyes.