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It's Pinocchio's first Christmas, and he sells the book Geppetto gives him for present money, but Cat and Fox trick him out of it. So, Pinocchio becomes part of a (Christmas) Marionette show to make present money. He steals a girl puppet when he leaves, and the gendarmes chase him into the Forest of Enchantment. There, he meets Azora, a fairy with a cricket who try to fix Pinocchio's lying and set him on the right track. But then he's sold to a Duke, whom Pinocchio convinces to spend time with his children. And only Santa's reindeer can get Pinocchio home in time for Christmas.