Huggy Wuggy was originally designed by Playtime CO. as a cuddly toy intended to be loved by children. The toy quickly became the company’s most successful product. However, prior to the events of the game, Huggy Wuggy was modified—his human conscience was transferred into him, but this process corrupted his mind, transforming him into a monster.
In his initial appearance, Huggy Wuggy pretends to be a statue in an attempt to deceive the protagonist. Once the player retrieves a key and restores power to a certain room, Huggy Wuggy vanishes from his pedestal. Throughout the game, he stalks the player, hiding in vents or high, unreachable spots. It is only in the dark, when the player runs into shadowed areas, that Huggy Wuggy emerges from the darkness and begins to chase them through conveyor belt tunnels.
If the player fails to reach the end of the belt where the catwalk is located, Huggy Wuggy appears, grabbing and biting them to kill. If they reach the catwalk, they must push a box to block and ultimately destroy Huggy Wuggy, causing both to tumble down. When the player survives this encounter, Huggy Wuggy falls into the void, crashing into some pipes. It remains unclear whether he survived the fall or perished.