Pippi Longstocking arrives in a small Swedish town to take up residence in her Villa. The young girl lives with her companions, Horse and Mr. Nilsson (a monkey). All the townsfolk agree that the village will never quite be the same again. Annika and Tommy, Pippi’s new neighbors, are excited about the adventures they are sure to share with their new friend; and the adults are certain that this eccentric little girl with her wild imagination, incredible strength and lack of parental supervision will cause no end of trouble.

Local crooks Thunder Karlson and Bloom are always looking for an easy and fast fortune. When they catch sight of Pippi’s chest of gold, they are determined to get a share for themselves. Pippi proves to be more of an obstacle than they had bargained for.

Pippi finds a hot air balloon in the attic and decides to try it out with Annika and Tommy. They fly to the next town and inadvertently manage to assist in the capture of two crooks.

Thunder Karlson and Bloom consult a Criminal Manual in hopes of accomplishing the perfect crime and getting Pippi’s gold. The Manual offers a lot of creative ways to carry out a crime. However, the Manual obviously didn’t take into account Pippi Longstocking and her eccentric habits.

The local horse show attracts the very finest horses. Pippi decides to enter Horse. After much humiliation from the other contestants, and to the horror of Mrs. Prysselius, Horse comes through it all with flying colours. Although unconventional, he performs much better than the rest.

Two city slickers decide they want to buy Villa Villekulla. Thunder Karlson and Bloom set themselves up as real estate agents and try to sell Pippi’s house, without her knowledge or consent. Pippi appears to be playing along, but all the while she is on top of the game and gets everyone so confused that the city folk vow never to step foot in a small town again. Thunder Karlson and Bloom are escorted to jail.