ロイヤルだんご手をつなぎ大きなまるい輪になるよ

艦隊をつくりだんご海の中みんなで笑いあうよ

The Royal dango hold their hands together and make a big, round ring
They build a fleet upon the dango sea and everyone laughs together

[tn]Here are the original lines from Dango Daikazoku, the bolded parts changed into the comment:
なかよしだんご　手をつなぎ　大きなまるい輪になるよ
The chummy dango hold their hands together and make a big, round ring
町をつくり　だんご星の上　みんなで笑いあうよ
They build a town on the dango planet and everyone laughs together[/tn]