The story begins with a piece of ordinary firewood that miraculously weeps and laughs in the shop of an old carpenter named Mastro Cherry. He passes the log to his friend Geppetto, who carves a marionette and names him Pinocchio. Before he is even finished, the wooden boy begins playing pranks, kicking his creator, and running away into the street. Brought back by the authorities, Pinocchio soon escapes again, ignoring the wise warnings of the Talking Cricket, whom he strikes and kills with a hammer in a fit of rage.
Left alone and desperately hungry, the marionette discovers the harsh consequences of his rebellion. He burns his feet off on a stove while sleeping, but Geppetto patiently crafts new ones and sacrifices his own coat to buy an A-B-C book for school. Instead of attending class, Pinocchio sells the book to see a puppet show, where he is welcomed by his wooden brothers. The theater director, Fire Eater, eventually gives him five gold pieces to take home to Geppetto. On the way, Pinocchio falls prey to a deceitful Fox and a Cat, who lure him toward the mythical Field of Wonders with the promise of multiplying his wealth.
After surviving a brutal hanging by disguised assassins, the marionette is rescued by a mysterious fairy with azure hair who tries to cure his stubbornness and lies, the latter of which causes his nose to grow alarmingly long. Despite her lessons, Pinocchio is led astray once more, running away to the infamous Land of Toys with his lazy friend Lamp-Wick. There, months of endless play culminate in a horrifying metamorphosis where both boys transform into donkeys. Pinocchio is sold to a circus owner, trained through severe abuse, and later thrown into the sea to be skinned for a drumhead after breaking his leg.
Miraculously surviving the depths through the intervention of fishes, he is swallowed by the Terrible Shark, inside of which he finally reunites with Geppetto, who had been trapped there for two years after setting out across the ocean to find him. Together, father and son make a daring escape from the monster's belly. Through hard work, diligence, and selfless devotion to caring for his ailing father and the fairy, Pinocchio is finally rewarded with the transformation he always desired, waking up as a real boy.