From the original story, not the Disney version (wikipedia):
Once Pinocchio is able to get Monstro to sneeze, the enraged animal chases after him and his father. The whale destroys the raft, sending Pinocchio and Geppetto into the unforgiving sea. After witnessing his father almost drowning, Pinocchio grabs him and swims to shore as quick as he can, but it’s too late. Even before he gets there, Monstro slams into a rocky wall, creating a forty foot tidal wave and killing him. Geppetto, Figaro, Cleo, and Jiminy survive. When Jiminy looks for Pinocchio, he makes a very depressing discovery – Pinocchio is lying face down in a large puddle.
Geppetto, Figaro, Cleo, and Jiminy return home and grieve over Pinocchio. Then the Blue Fairy revives Pinocchio and transforms him into a real boy because he has now proved himself brave, truthful and unselfish. Jiminy is then awarded with a certified 18-karat conscience badge.