Blue Fairy rescues Pinocchio from his dilemma, but again ignores her instructions, creating more problems. Meanwhile and thinking the boy was kidnapped and sent to America, Geppetto builds a boat and sets sail but got lost on the sea.
Learning how to be a boy, Pinocchio gets himself into all kinds of trouble; getting conned by a thief into stealing and an encounter with unsavory ruffians and kidnappers.