The Hugga Bunch

The Hugga Bunch was a 1980s toy line from the Kenner, Parker Brothers companies and Hallmark Cards. Starting in early 1985, the companies manufactured the Hugga Bunch dolls, each of which held a smaller doll called a "huglet" in their arms. During that year, the line generated over US$40 million in sales.
The title characters in the franchise lived in a place called "Huggaland".
Film.
The toys inspired The Hugga Bunch, a 1985 television film produced by Filmfair Communications.
Written by David Swift and directed by Gus Jekel, it earned a Primetime Emmy Award for Outstanding Visual Effects. Produced for US$1.4 million, it was the most expensive TV special ever produced at the time. Along with a making-of special, it was released on VHS, LaserDisc and Beta by Vestron Video's Children's Video Library. To date, it has not been released on DVD and/or Blu-ray.
Plot.
In the film, a girl travels through her mirror into HuggaLand to find a way to keep her grandmother—the only one who knows how to hug—young.