It's Buddy! is a children's television series reminiscent of the 1990s, centered around the character Buddy, an anthropomorphic unicorn endowed with magical powers. The show features an array of characters, including child actors Freddy, Wade, Josh, and Oliver, alongside Buddy's sidekick, Betty Bunny. The adult cast consists of Mailman Miles and Nurse Nancy, with a collection of sentient objects breathings life into the show, including Mr. Mailbox, Couchy the Couch, Clocky the Clock, Strappy the Backpack, Trashy the Trash Can, and Charlie the Train.
As the series progresses, tensions rise when Buddy grows increasingly frustrated with Josh, who ultimately refuses to join a dance party and mysteriously disappears. In his place appears a new child, Hannah, while Buddy reassures everyone that Josh is having a wonderful time in the idyllic Diamond City. However, after Freddy uncovers Josh's bloodied book discarded in the trash, she turns to Nurse Nancy for help, who promises to address the situation with Buddy. Freddy’s dismay escalates when she witnesses Buddy fatally assaulting Nancy and violently demolishing Clocky.
In a rush to escape the malevolent clutches of Buddy, Freddy and Wade convince Hannah and Oliver to flee towards Diamond City inside the friendly Charlie. Regrettably, their efforts are thwarted when Buddy murders Charlie and abducts Wade. In a moment of desperation, Wade employs a cleaning spray and lighter to inflict serious damage on Buddy, setting him ablaze and disfiguring him. The chaos unfolds further as Buddy retaliates brutally, killing Mailman Miles, while Freddy, Oliver, and Hannah manage to flee with Strappy and Mr. Mailbox, who is left with a gruesome wound from witnessing Buddy's tyrannical actions.
On a parallel thread, we shift to a woman named Grace, who enlists a psychic investigator to help her family, including her husband Ben and their sons Timothy and Derek, contact the spirit rumored to haunt their home. This ritual inadvertently connects them to the strange world of It's Buddy!, leading Grace to believe she might have a lost third child, a notion Ben dismisses.
Gradually, the children within Buddy’s world, including Freddy, Oliver, and Hannah, start to lose their memories of life before Buddy’s influence, except for Freddy, who begins to remember fleeting glimpses of her childhood. Their journey introduces them to an elder cowboy named George and his foul-mouthed puppet sidekick, Willie, who have been evading Buddy since he killed a child mocking the show's theme song. However, their encounter takes a tragic turn as the children consume psychedelic flower petals, leading to unconsciousness, and upon awakening, they discover George and Willie are missing.
The horror escalates as Buddy discovers George and quickly eliminates him, drowning Willie shortly thereafter. Seeking vengeance, he begins tearing Strappy apart, luring the children back towards him. Racing on their bikes to save Strappy, the children soon reach what appears to be Diamond City, only to realize it is merely a miniature replica. The façade dissolves as Buddy confronts them, restarting the grim cycle of It's Buddy! with new children, Tyler, and a replacement for Mailman Miles.
When Freddy seeks solace with Grace after sustaining a cut, a moment of recognition ensues as Grace identifies Freddy as her long-lost daughter. Frustrated and enraged, Buddy is provoked by the children who sing the mocking song, transforming him into the beastly Dark Buddy, who wreaks havoc upon the cast, killing Mailman Justin, Couchy, and Betty before setting his sights on Freddy. To allow the remaining children a chance to escape, Grace bravely sacrifices herself.
In a dramatic twist, Tyler manages to revert Buddy back to his former self, only for Buddy to retaliate by snapping Tyler’s neck and pursuing the children into a well. Despite his grotesque self-mutilation to pursue them, the kids take refuge in a prop room where Buddy brutally dispatches Hannah and consumes Oliver whole. Frantic and desperate, Freddy races through the corridors as Strappy unexpectedly trips Buddy, leading to Buddy's impalement.
In his final moments, Buddy, while attempting to reset the show once again, manages only to curse Freddy before succumbing. As Freddy stumbles upon a gymnasium filled with multiple televisions, each revealing a real-world home where a child watches in horror, it becomes clear that the children from Buddy's realm are connected to reality.
Freddy eventually finds herself in an empty house and bursts through the screen into a living room, overwhelmed with emotion as she realizes that both Strappy and Mr. Mailbox have regressed back to inanimate objects. Upon her arrival, she is approached by the father of a Spanish-speaking family, who kindly inquires, "Who are you?"
