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Pedrinho goes hunting in Capoeirão dos Tucanos, the virgin forest of Sítio do Picapau Amarelo, and meets the Saci, who tells him the secrets of the forest and several legends of Brazilian folklore. They work together to free Narizinho from a spell that Cuca put on her.

In this story, Narizinho visits the world of Prince Escamado, meets the frog Major Agarra-E-Não-Larga-Mais, quarrels with Dona Carochinha, and receives the most dazzling dress—crafted especially for her by Dona Aranha, the world's best seamstress. In the Kingdom of Clear Waters, Emília comes to life, takes Doctor Caramujo’s pills, and begins to chatter away. Meanwhile, back in the city, Pedrinho prepares for his long-awaited vacation at the Yellow Woodpecker Farm, alongside his grandmother Dona Benta and Tia Nastácia’s delicious treats.