The Fox and the Cat convince Pinocchio that he should bury the money he got back for the book in the snow and when the sun sets, they will grow into a Christmas tree covered with gold and silver coins.

After the show, Maestro Fire-Eater tells Pinocchio that he needs to turn Jullietta into one of the Magi for a Christmas pageant next week.

Pinocchio explains his backstory to her like how he came to life, how he accidentally drove away a Talking Cricket that Geppetto is friends with, and how he met the Fox and the Cat who taught him how to misbehave and play hooky from school.

Just then, the Fox and the Cat show up telling Pinocchio they know how he can bring Julietta to life using a secret medicine which he can only find if he goes on a sleigh ride over seven mountains and seven valleys.

Pinocchio attempts to explain his terrible action of stealing Julietta from Maestro Fire-Eater by lying which causes his nose to grow.

Pinocchio starts making his way home, but he suddenly again runs into the Fox and the Cat who say that he should go to the North Pole and get a job teaching Santa Claus' toys how to dance.