Molly is Loonette's dolly. Loonette found her in a barrel with a sign marked "Free to a good home", and adopted her. She is puppetered by Bob Stutt.
Molly wears a blue dress (sometimes a yellow one, an orange one in a couple of episodes and a light green one in the books), and occasionally bunny pajamas. She believes that dust bunnies really exist, despite Loonette's disbelief. Her favorite food is doughnuts. She only speaks by cartoon bubbles, and usually answers Loonette's yes–no questions by either nodding or shaking her head.