Geppetto's Workshop is the home of Geppetto, Pinocchio, Jiminy Cricket, Figaro, and Cleo. It is first viewed as a simple shop of a woodcarver, but is also the home of Geppetto. The shop is filled with several elaborate clocks and toys. There are also various other creations in the shop including candle holders, ceramic figures, and mugs.
One quiet night, Jiminy Cricket hopped into Geppetto's workshop to which what he found there was a puppet known as Pinocchio. Satisfied of Geppetto naming his puppet "Pinocchio", he happily observes him working on the puppet. Jiminy hides under a music box which Geppetto activates, not noticing that it functions when activated during the musical number "Little Wooden Head". Later, the clocks at Geppetto's workshop start ringing, indicating that it's past bedtime. Geppetto, Figaro, and Cleo sleep altogether peacefully until the Blue Fairy arrived. She then transforms Pinocchio and brings him to life through the use of her magic wand. Pinocchio comes to life, just as she explains to him that in order for him to be a real boy, he must prove himself brave, truthful, and unselfish so that Pinocchio can be a real boy. The Blue Fairy then explains to Pinocchio that his conscience Jiminy Cricket will help him be his guide. During the musical number "Give a Little Whistle", Jiminy helps him learn how to be a good boy by letting him be his guide. Later as Geppetto reacts in shock, he looks at Pinocchio who feels satisfied that he came to life. Feeling joyful, Geppetto turns on the clocks just as he and Pinocchio dance together in excitement. Later, as it is past midnight, Geppetto then takes Pinocchio to bed so that he can start a new day.
The next day, Pinocchio leaves Geppetto's workshop to take him to school, only to find out that he did not go to school as he was distracted upon meeting Honest John and Gideon.
As Pinocchio is still not at home and it is dinner time, Geppetto explains that Figaro must not eat until Pinocchio returns. As Pinocchio returns to the workshop, he and Jiminy find out that Geppetto, Figaro, and Cleo are not home, which indicates that according to a message sent by the Blue Fairy, it explains that they have been swallowed inside the monstrous whale, Monstro, prompting Pinocchio and Jiminy to find them and rescue them.
Back at home after Pinocchio washed up unconsciously during the chase with Monstro, Pinocchio lies down on bed as Geppetto cries over him, as Jiminy Cricket, Figaro, and Cleo also mourn his death. The Blue Fairy then tells Pinocchio again to prove himself brave, truthful, and unselfish so that he can be a real boy. Pinocchio (now a real boy) is brought back to life, much to Geppetto who is still crying over Pinocchio. He later realizes that Pinocchio is brought back to life once again. Seeing that, he and Pinocchio celebrate in joy, along with Jiminy, Cleo, and Figaro. That night, Jiminy receives a badge from the Blue Fairy for being Pinocchio's official conscience, just as a reprise of the musical number "When You Wish Upon a Star" plays.