 Juanito, a chronic liar, is jealous of his parent s adopted daughter, Isay. He makes up stories and even tells people that he has seen a Nuno Sa Punso who is out to get Isay. Juanito lies twice before he sees a real nuno and a dwende. His parents wont believe him. Juanito, together with Epoy, Jewel and Rextor decide to follow Isay and find the magical world of the dwendes. The nuno reprimands Juanito and Epoy for lying to their parents. He even tests Juanito if he would be willing to sacrifice Isay to stay with them. Juanito begs the nuno to take him instead of Isay. Nuno acknowledges Juanito s sacrificial gesture and sends him and Isay back to Juanito s parents. Juanito promises not to lie anymore.