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.

Pippi discovers that she is missing out on certain holidays because she doesn’t go to school, so there is nothing to take a holiday from. She joins Annika and Tommy and attends the local school, much to the amusement of the other students and the dismay of the teacher.

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.

Pippi befriends an inept, but good-natured carpenter and manages to help him find work in the village. When his poor workmanship puts the town at risk, Pippi must step in to do some hasty renovations.