- Woody: Wait! What about Daisy?
Lotso: I don't know what you're talkin' about.
Woody: Daisy? You used to do everything with her?
Lotso: Yeah. Then she threw us out!
Woody: No! She lost you!
Lotso: SHE REPLACED US!!!!
Woody: She replaced you! And if you couldn't have her, then no one could!
- —Woody and Lotso argue about Daisy
Toy Story 3
- Woody: She loved you, Lotso.
Lotso: She never loved me!
Woody: As much as any kid ever loved a toy.
- —Woody and Lotso arguing more
When Woody stayed at Bonnie's house, Bonnie's toys directed Woody to Chuckles when Woody mentioned Sunnyside. Chuckles told Woody about how he, along with Lotso and Big Baby, was once loved by Daisy, living at her house. In a flashback, she unwrapped a Lots-o'-Huggin' Bear doll for Christmas and had a lot of fun playing with him, Big Baby, and Chuckles. During a picnic, Daisy had lunch and then fell asleep. She got driven home by her family, and Lotso, Big Baby and Chuckles waited day and night for her to return. They then decided to go back to Daisy's house. But unfortunately, Daisy bought another Lotso doll in order to compensate for the original Lotso that she had accidentally lost during the picnic. Lotso was envied by this, which made him snap, so he stormed off with Big Baby and Chuckles, and took over Sunnyside Daycare to ruin the whole idea of the concept. Daisy was never seen again from this point on.
When Lotso and his henchmen corner Woody and the rest of Andy's toys at the dumpster, Woody confronts him about Daisy. Lotso instantly gets upset, and says that Daisy had thrown him out, replaced him, and never loved him at all. Woody denies this, and reveals the truth: Daisy had lost her three best toys and only replaced Lotso. But Lotso, in an act of jealousy, had bitterly lied to Big Baby that Daisy had replaced all of them because if he couldn't have her, then no one could. After some more arguing, Woody throws the pendant to the other side of the dumpster where Big Baby picks it up and, remembering Daisy, sniffles, "Mama." This makes Lotso snap, as he angrily snatches the pendant away from Big Baby and smashes it into pieces with his cane, which makes Big Baby start crying. Lotso then orders his henchmen to push all of Andy's toys into the dumpster, insults and hits Big Baby, and rants about the meaningless value of toys. Angry at Lotso and having become fed up with all of his lies, Big Baby finally turns on his former leader, lifts him up (which makes Lotso drop his cane), throws him into the dumpster, and closes the lid shut. Big Baby then blows a raspberry directed at Lotso.
- In the terms of a "lost toy," replacing it does not equal neglecting the original toy, but would signify the special bond between the toy and the owner. Daisy had loved Lotso so much that she couldn't accept the fact that he was lost, which is why she replaced him with the other toy bear. Woody seemed to be clearly aware of this when he told Lotso that Daisy had loved him. Woody also makes the point that it was in fact Lotso who abandoned Daisy, as he was really upset for losing his place in the spotlight. And if he couldn't have her, then nobody could. Chuckles knew that Daisy loved Lotso, but may have never gotten the opportunity to tell him because he was silenced and possibly later imprisoned at Sunnyside. Had Lotso understood this, he could have redeemed himself.
- While similar, Jessie's backstory was indeed much more depressing. Rather than being replaced by another toy, she was replaced by adolescence, as her owner Emily had grown tired of her.
- Even in spite of this, Jessie was simply depressed over her loss, showing that she was still attached to Emily. Whereas, Lotso was jealous that he was no longer the center of attention.
- It can be speculated that if Lotso really cared about Daisy, he would have got himself and the other toys back inside the house (i.e. knocking on the door and waiting for someone to see them). Then Daisy's parents could have simply returned or given away the other toy bear, or kept them both.
- It is unknown for now if Daisy still has the replacement Lotso or if she has either donated him or stored him in the attic.
- Some people blame Daisy's parents for Lotso's villainous demeanor, as they could have went to look for their daughter's lost toys instead of replacing Lotso.
- Her age is currently unknown.