Can refer to the character from the story or colloquially to someone who lies.
Ese chico es un verdadero Pinocho; siempre dice mentiras que no se cree nadie.
That boy is a true Pinocchio; he always tells lies that nobody believes.
El niño que mento constantemente fue castigado por sus mentiras repetidas.
The boy who lied constantly was punished for his repeated lies.