This is the magical story of a new-born baby abandoned on the doorstep of a Franciscan monastery, who grows up to become a cheerful and mischievous boy called Marcelino Pan y Vino. Marcelino, who is able to talk with animals, lives very closed to the animals, the trees and plants. He delights in discovering new things, and often asks unusual questions. The friars educate and love the boy.

The film was directed by Giuliano Cenci with assistance from his brother Renzo. During production, Carlo Collodis grandchildren Mario and Antonio Lorenzini were consulted. The subtle movements made by fidgeting children whilst speaking or under scrutiny were incorporated into Pinocchios movements, particularly when he lies to the Fairy with the Turquoise Hair over the fate of his gold coins. For the design of the Fairy, Italian portrayals of the Blessed Virgin Mary in art were used as starting points.

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Anna, a rich lady, decides to finance in great secrecy a singular enterprise: the founding of a real center for the creation of ideas, directed by Mario Morelli, a poet and songwriter perpetually waiting for great success, and a painter, Enrico Bovio, who cannot find the inspiration or the model for a portrait of a woman he wants to finish. Both are short of money and, convinced of the brilliance of their ideas, wish to open that bizarre business, called precisely the "Bazaar of Ideas".