Yes, that's how they transport nest materials. In the wild, they would tear off strips of palm fronds.
Do you know if it's male or female? I would try to discourage this if you have a single female - you really don't want to her to start laying eggs. But just to be sure, you should make sure she has a cuttle bone or mineral block for calcium... and if eggs are laid don't take them away.

Karen
Chico (conure) and Pippin (budgie)
WI

Thank you or your reply. We believe it is a female but are not sure. Our daughter had the bird land on her during phys. ed class this past spring. We tried to find the owner but had no luck. Kristina is a senior in high school and works at a pet store so she did all all the investigating on care etc. My daughter named "her" Luccia.

This is the second time she has done the paper stuffing but she has never layed an egg. Luccia is really her bird but since she is leaving for college in the fall I am trying to share some of the care. Luccia has definitely bonded with Kristina and we are worried she will get sick without her here.

How would we discourage the paper stuffing? Should we not give her any? I give it to her because she likes playing with it.

My Kids are
1 CHERRY HEAD CONURE
2 QUAKERS PENELOPE AND PARKER 1 Blue Quaker
1 BLUE FRONTED AMAZON Suzzie 1 Yellow Nape Amazone
2 PEACH FRONTED CONURES PEE WEE AND PEATTREE
1 red breasted Mustach Parkett
3 VIOLET LOVEBIRD DILLON, CONSTINE,TWEETYBIR

HI
ALL MY LOVEBIRDS START DOING THAT WHEN THEY ARE GETTING READY TO MATE BOTH MALE AND FEMALES TAKE THE PAPER AND PUT IT IN UNDER THERE WINGS BUT THE FEAMLE IS THE ONLY ONE WHO CAN CARRIE IT TO MAKE THE NEST. THE MALES TRY BUT CANT. IF SHE DOES LAY EGGS DONT REMOVE THEM YET. LEAVE THEM OR SHE WILL KEEP LAYING AND MIGHT GET EGG BOUND. GOOD LUCK