Huggy Wuggy was originally created by Playtime CO. as a friendly plush toy designed to be loved by children. It quickly became the company’s best-selling product. However, before the events of the game, Huggy Wuggy was altered—his human consciousness was transferred into him, but this process left him corrupted, transforming him into a menacing monster. In his first appearance, Huggy Wuggy attempts to deceive the protagonist by masquerading as a statue. Once the player manages to find the key and restore power to a certain room, Huggy Wuggy detaches from his pedestal, beginning to stalk the player from vents and high, inaccessible spots.
The creature’s most aggressive encounter occurs in the dark, where it emerges from shadows and chases the player through conveyor belt tunnels. If the player fails to reach the catwalk at the end of the belt, Huggy Wuggy ambushes and kills them with its sharp teeth. If they succeed, they must push a box into the creature’s path to block it, then destroy Huggy Wuggy, causing both of them to fall. In the aftermath, Huggy Wuggy is seen falling into the abyss after hitting some pipes, but it remains uncertain whether it survives or perishes in the fall.