The parrot, named Louie, alerted Barbara Klein, her husband Larry and their six-year-old granddaughter Kaitlyn Rose Pellerin to a fire which had begun in their kitchen.
The three family members, who had all been asleep when the blaze started in the early hours of February 3, woke up when they heard Louie yelling “fire”, a word he had reportedly never used previously.
Although they survived, their parrot and four dogs all died in the fire.
Ms Klein, a 63-year-old retiree from Lebanon, Tennessee, said: “Louie is a true hero. If it weren’t for him I probably would have been sleeping during the fire."
Ms Klein added that when she woke up the fire had spread to the living room.
Ms Klein also said that her husband tried to tackle the flames, later returning in an attempt to save the couple’s dogs and his grandfather’s guitar.
As a result, Mr Klein, a 61-year-old machine operator, was airlifted Vanderbilt University Medical Center, where he was put into a coma.
His wife said it was “a miracle” that he survived. He is now out of hospital.
Ms Klein praised the local community in Lebanon, Tennessee, who donated clothing to them. An apartment has also been given to them for three months.
Ms Klein said: “The man who donated the apartment also gave us a baby parrot as well. We call him Louie Jr.”
A GoFundMe campaign was set up for the family earlier this month, which has so far raised $5,690 (£4,391).
Additional reporting from SWNS