While Pippi Longstocking awaits her pirate father’s return from the sea, she takes up residence in the long vacant house he bought for her many years ago. She settles in with her horse, her monkey Mr. Nelson and a suitcase full of gold coins. The neighbor kids, Tommy and Annika, are delighted to see the house is occupied again, and amazed to discover Pippi lives there without adults.

As Pippi beguiles the kids with tall tales and talks of wordly travels, a woman from the local orphanage approaches. With a personality to match her name, Mrs. Prysselius tries to explain why Pippi should come with her. Claiming she doesn’t need to go to an orphanage because she already lives in her own “children’s home,” Pippi’s actions simply bewilder the woman who leaves in a state of disbelief.

Everything’s a game without rules to Pippi, as Tommy and Annika introduce Pippi to new experiences. First, it’s the circus, where Pippi quickly joins the center ring to ride the horse and wrestle the strongman. Back at home, Pippi befuddles would-be thieves then gives them a gold coin for their troubles. Next Constables Cling and Clang try to take Pippi in, but she simply leads them in a game of hide-and-seek, with the policemen ending up on Pippi’s roof without a ladder to get down.

Pippi’s innocent-hearted antics continue as she makes a guest appearance at Tommy and Annika’s school. There, her uninhibited behavior and lack of knowledge or interest in academics flusters the teacher. Pippi simply doesn’t know or care about rules, conventions or manners. Her inappropriate conduct is even less appreciated when she’s a guest at the neighbor’s tea party. She dreams of her father’s return and just when the authorities seem to be catching up with Pippi, Captain Longstocking re-appears.