Jiminy Cricket walks into the workshop of the woodworker Mister Geppetto with Winnie the Pooh, Piglet, Tigger, Rabbit, Eeyore, and the Jungle Book Vultures to warm himself from the cold, and watches as Geppetto finishes work on a puppet he names Pinocchio. Before falling asleep, Geppetto makes a wish on a falling star that Pinocchio could be a real boy. During the night, the Blue Fairy visits the workshop to grant Geppetto's wish and brings Pinocchio to life, though he is still a puppet. The fairy tells Pinocchio that if he wants to become a real boy of flesh and blood he must prove himself to be brave, truthful and unselfish and able to tell right from wrong by listening to his conscience. Pinocchio doesn't understand what a conscience is, and Jiminy and the others appears to explain it to him. The Blue Fairy asks if Jiminy and Pooh and his friends would serve as Pinocchio's consciences, a task they accepts.
Geppetto discovers that his wish has come true, and is filled with joy. The next day, he sends Pinocchio on his first day of school. However, Pinocchio is led astray by the conniving Honest John and Gideon, who convince him to join Stromboli's puppet show instead. Pinocchio becomes Stromboli's star attraction, but when Pinocchio offers to come back in the morning, Stromboli locks Pinocchio in a birdcage to stop him leaving. With the help of the Blue Fairy, Jiminy, Pooh, and the others Pinocchio, escapes.
Unfortunately, on his way back to Geppetto's house, Pinocchio is once again led astray by Honest John and Gideon, who convince him to go to Pleasure Island. On his way he befriends Lampwick, a misbehaved and destructive boy. Soon Pinocchio and the other boys begin to enjoy gambling, smoking, getting drunk and destroying Pleasure Island, much to Jiminy and our heroes' dismay. Then Jiminy and our heroes discover the island has a curse that transforms boys who "make donkeys of themselves" into real donkeys, who are then sold to work in the salt mines, circuses, and for Bowser Koopa as part of an evil racket run by the Coachman. Lampwick is soon transformed into a donkey, but Pinocchio manages to escape with a donkey's ears and tail.
Upon returning home, they find the workshop empty and soon learn from a letter by the Blue Fairy that Geppetto, while venturing out to sea to rescue Pinocchio from Pleasure Island, had been swallowed by a giant whale named Monstro. Determined to rescue his father, Pinocchio jumps into the bottom of the ocean, with Jiminy and Pooh and the others accompanying him. However, Pinocchio is soon found and eaten by Monstro, where he is reunited with Geppetto and his pets inside the whale. Pinocchio devises an escape plan by burning wood in order to make Monstro sneeze. The plan works, but the enraged whale gives chase. Eventually, Pinocchio succeeds in getting Geppetto to safety in a cave under a cliff before Monstro rams into it, but Pinocchio dies in the process. As Geppetto, Jiminy, Pooh, the others, and the pets mourn the loss, the Blue Fairy decides that Pinocchio has proven himself unselfish and thus fulfills her promise to turn him into a real boy, bringing him back to life, much to the delight of Geppetto, Jiminy, and Pooh and the others.
- Jiminy Cricket will be joining Pooh and the others in all of their adventures created by DisneyDaniel93.
- In one scene in the movie, the coachman mentions Bowser Koopa's name while putting the Donkeys in the shipping boxes.
- This is a PAL film with PAL bits from The Many Adventures of Winnie the Pooh, Pooh's Grand Adventure: The Search For Christopher Robin, Piglet's Big Movie, Pooh's Heffalump Halloween Movie, and The Jungle Book and NTSC bits from The Tigger Movie, Winnie the Pooh: A Very Merry Pooh Year, and Pooh's Heffalump Movie.
- The TV show The New Adventures of Winnie the Pooh was in reruns on ABC Saturday mornings at the time when Pinocchio was re-released in theaters in 1992 and around the time when the film had another home video release in 1993.
- Pinocchio was first released on DVD in 1999, the same year that Winnie the Pooh: Seasons of Giving was released straight to video.