The Viscount of Sabugosa is locked in the library writing an encyclopedia about the characters in children's fables. Dona Benta receives a letter from little Thumb, written on a rose petal, in which he, realizing that the inhabitants of the world of fables are forgotten in the books on the shelves, requests that everyone live in Sítio do Picapau Amarelo. Emília and the children love the idea, and Dona Benta says yes. They move

Pedrinho goes hunting in Capoeirão dos Tucanos, the virgin forest of Sítio do Picapau Amarelo, and meets the Saci, who tells him the secrets of the forest and several legends of Brazilian folklore. They work together to free Narizinho from a spell that Cuca put on her.

At Pedrinho's request, Dona Benta begins to tell the legend of the Minotaur. In the middle of the story, a strange visitor appears on the farm and takes Aunt Natácia to some unknown place. Upon discovering that she was kidnapped by the Minotaur, the whole gang goes on an adventure to try to save Aunt Nastácia. And that's when the fun begins.

The series exhibited several stories based on folklore and mythology , with characters such as Cuca, Saci Pererê and Iara from Brazilian folklore and then later with several characters from fairytales, fables, literature and greek mythology. The residents of Sítio, Emília, Narizinho, Pedrinho, Dona Benta and Tia Nastacia live several adventures with a lot of the mystery and dangers that haunt the remote town of Arraial do Tucanos.

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