It's Pinocchio's first Christmas and he wants to buy his father a Christmas present. He tries to get a job to earn money, and The Fox and the Cat trick him out of the money he has; convincing him to "plant" the coins in order to grow a "money tree." The con is accompanied by a song in which the pair promise their story is true, "or may lighting strike me dead" in which lighting repeatedly strikes the characters.
In the end, he meets Lady Azora, a fairy who planted the tree which he came from. She helps him to see that Christmas is not about the gifts, but instead about being together with family.