Fada do Carvalho, also called the Blue Fairy or Fairy with Turquoise Hair, is a mystical oak tree entity who intervenes in Pinocchio's existence. Sensing Geppetto's profound loneliness and desire for a child, she grants life to his wooden puppet, transforming an oak branch into a sentient being. Her intervention carries a condition: Pinocchio must prove moral growth, righteousness, and kindness to become a real human boy.

She serves as both guardian and disciplinarian, observing Pinocchio and stepping in during critical junctures. When he displays cruelty and arrogance as a prince, she transforms his nose into a small tree—a direct punishment for moral failure. Later, after his transgressions leave him stranded as an immobile tree-faced creature, her influence indirectly prompts a woodcutter's rescue, steering Pinocchio toward humility and consequences.

Her guidance extends beyond discipline. She advises Pinocchio through intermediaries like the Cricket and directly saves him from bandits in moments of peril. During the climax, she intervenes to prevent soldiers from killing him. Recognizing his selflessness in curing ill children and rescuing his father, she fulfills her promise by transforming him into a real boy. This act coincides with her final departure, as she states her inability to appear to humans, concluding her role.

Her powers include life-bestowal, physical transformations, teleportation, and nature manipulation, deployed to enforce moral lessons or ensure Pinocchio's survival. Her connection to the oak tree and broader natural world surfaces when trees seek her intercession through Pinocchio to prevent deforestation.