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"Don't run away, we want to play!"
Peg-dolls are living dolls that run around in a doll house in George the Tenza's cupboard. Created by George's subconscious mind, the dolls appear like mindless wooden zombies with the ability to convert other lifeforms into dolls like them. They seemingly represent George's fear of abandonment, and when he was able to overcome those fears, the dolls returned to their original inanimate state.