

The Butterfly Room has boxes full of scraps and spare parts in case any toys are broken and is also the room where Ken's Dream House is, as shown in Barbie's tour sequence and her double cross. Buzz Lightyear, whilst in his reversal Demo State, was allowed in the vicinity by Lotso and his gang. It is also the primary location for the misleading villains. This is where most donated toys were dropped off originally. They were civilized and knew how to play peacefully with the toys. The Butterfly Room is a room reserved for the preschool children and above.

Sunnyside was a bright building with a rainbow in the doorway that was made up of many different rooms, dividing the different aged kids. They restored the daycare to its original greatness, created programs to assist the toys that were roughly played by the toddlers, and warmly welcomed toys such as Emperor Zurg and Sarge and the Army Men to their happy home. Sometime after he was done away with, Barbie and Ken revolutionized Sunnyside and became its new leaders. When Andy's toys came to the daycare, they ended Lotso's rule over Sunnyside.

He also established his gang of toys who would patrol around Sunnyside to ensure that all toys assigned to the Caterpillar Room wouldn't escape. He only let toys that he thought were special into a better part of Sunnyside, which was almost a paradise for toys. He turned Sunnyside into a place where only some toys got the privilege of being played with by nicer kids in the Butterfly Room while the rest, such as Andy's toys, were subjected to being abused, kicked, and beaten up by toddlers in the Caterpillar Room. Sunnyside Daycare was once a great place for toys to be played with until Lotso arrived after being replaced by his original owner, Daisy. "Sunnyside is a place of ruin and despair, ruled by an evil bear who smells of strawberries!" - Mr. Early concept artwork showing Sunnyside before and after Lotso's arrival.
