Peggy Pane is the story of a naughty handmade rag doll in a toy nursery. The little girl's grandma makes her a new doll called Peggy Pane. The moment Peggy enters the toy nursery she starts creating havoc for the other toys by pulling tricks at them, scaring them, and troubling them. The toys keep trying to tell Peggy to stop and also try to teach her a lesson. But will Peggy ever listen and turn a new leaf?