- "Sunnyside is a place of ruin and despair, ruled by an evil bear who smells of strawberries!"
- —Mr. Pricklepants
Sunnyside Daycare was once a great place for toys to be played with until Lotso arrived after being replaced by his original owner, Daisy. 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. He only let toys that he thought were special into a better part of Sunnyside, which was almost a paradise for toys. 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.
When Andy's toys came to the daycare, they ended Lotso's rule over Sunnyside. Sometime after he was done away with, Barbie and Ken revolutionized Sunnyside and became its new leaders. They restored the daycare to its original greatness, and warmly welcomed toys such as Emperor Zurg and Sarge and the Army Men to their happy home.
Sunnyside was a bright building with a rainbow in the doorway that was made up of many different rooms, dividing the different aged kids.
The Butterfly Room is a room reserved for the preschool children and above. They were civilized and knew how to play peacefully with the toys. This is where most donated toys were dropped off originally. It is also the primary location for the misleading villains. Buzz Lightyear, whilst in his reversal Demo State, was allowed in the vicinity by Lotso and his gang.
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.
In the end credits, when Sunnyside is revolutionized into a cool and groovy paradise for all toys by Barbie and Ken, toys from the Butterfly Room take turns enduring a rough playtime with the toddlers in the Caterpillar Room while toys from the Caterpillar Room are welcomed into the Butterfly Room to enjoy a nice playtime with the preschoolers. Under the couple's leadership, the Butterfly Room is used for discos at night.
- "And here’s where you folks will be staying: the Caterpillar Room."
- —Lotso, assigning Andy's toys to the Caterpillar Room
The Caterpillar Room, opposite to the Butterfly Room and located across the corner of the only corridor, is a room reserved for toddlers and also the primary location for Andy's toys (aside from Woody as he was in the care of Bonnie Anderson at her house). This room features Chatter Telephone, Billy's toys, and three Pop Ups.
Lotso and his gang brought new toys to this room so they themselves wouldn't have to be mishandled by the toddlers. The toddlers of the Caterpillar Room are shown to have no respect of treating the toys properly: Buzz is licked on his helmet and used in a hammering fashion; Jessie's ponytail is used as a paint brush; Mr. and Mrs. Potato Head are dismembered part to part, their pieces are chewed on, and they are drawn upon; the Aliens are bounced on and become tangled in Slinky's spring; Bullseye is thrown (in similarity to Rex, but left the most unharmed); and Hamm is filled with toys (one of them being Mrs. Potato Head's arm) and has noodles and glitter stuck to his back by glue.
While Lotso was in power at Sunnyside, the Caterpillar Room served as a prison for Andy's toys, with the wire cubbies functioning as prison cells. After Sunnyside was revolutionized into a true toy paradise by its new leaders Barbie and Ken following Lotso's removal, the toys, including those from the Butterfly Room, would take turns experiencing the rough playtime with the toddlers.
The office is a room reserved for the staff of Sunnyside. Children attending the daycare are not allowed in the office. The office features the Monkey, a nighttime security guard assigned by Lotso.
Inside the office are monitors linked to security cameras all over the daycare, a joystick that pans one of the cameras (selected by a numeric keypad right next to the joystick), filing cabinets (one of which the Monkey, wrapped in a tape, is tossed into), and a bulletin board on which keys of the daycare doors are kept.
Located in a hallway that separates the Caterpillar Room from the Butterfly Room, the Vending Machine used to be a secret hideout where Lotso and his gang had secret meetings at night and gamble. It is unknown what becomes of the vending machine after Lotso's gang reform for the better; however, it is highly likely that they discontinued their indecent activities, such as gambling, and thus this place went abandoned.
The sandbox, referred to as The Box, is located in the playground and used as a punishment by Lotso for any toy that would break his rules. Any infraction of any rule whatsoever, would result in a toy prisoner spending a night in the Box. Mr. Potato Head was thrown into the Box twice by Big Baby.
Additional features of Sunnyside Daycare include bathrooms, a playground, a garden, and a garbage chute that led to a dumpster outside of the facility.
- "Daycare is a sad, lonely place for washed up old toys who have no owners."
Sunnyside is home to hundreds of toys. Some of the most prominent are named below.
- Lotso (former leader and resident, excluded)
- Barbie (new resident, Ken's girlfriend and co-leader)
- Ken (Barbie's boyfriend and co-leader, formerly Lotso's right hand man)
- Big Baby (formerly Lotso's chief enforcer)
- Twitch (formerly Lotso's henchman)
- Chunk (formerly Lotso's henchman)
- Sparks (formerly Lotso's henchman)
- Stretch (formerly Lotso's henchwoman)
- Woody (temporarily)
- Buzz Lightyear (temporarily)
- Jessie (temporarily)
- Rex (temporarily)
- Hamm (temporarily)
- Slinky Dog (temporarily)
- Bullseye (temporarily)
- Mr. Potato Head (temporarily)
- Mrs. Potato Head (temporarily)
- Aliens (temporarily)
- Chatter Telephone
- Bookworm (formerly Lotso's henchman and "librarian")
- The Monkey (formerly Lotso's security guard)
- Emperor Zurg (new arrival)
- Sarge and his two paratroopers (new arrivals)
Along with the toys above, there have been many more toys in Sunnyside. All of these toys are very minor characters.
- Lotso's Dump Truck
- Fast Food Items (Hamburger, Fries & Soda Drink)
- School Bus
- Red Robot
- Blue and Yellow Robot
- Dolphin from Finding Nemo
- A stingray, similar to Mr. Ray from Finding Nemo
- Two crabs from Finding Nemo
- Blue Cat
- Blue Dinosaur
- Magic 8-Ball (donated by Molly)
- Green Dog
- Brown teddy bear
- Cell Phone
- Red Apple Toy
- Green Pterodactyl
- 2-D Dinosaur
- Toy Police Cars (seen in Toy Story 3: The Video Game)
- Cube-Like Animals
- Vegetable Patch
- Stuffed Elephant
- Boy Doll
- Girl Doll
- Lots of Mini Figurines
- Green Truck
- Billy's toys
- Toy version of a Tractor from Cars
- A firetruck, similar to Red the Firetruck from Cars
- A wooden car, similar in design to Lightning McQueen from Cars
- Yellow rabbit
- Farm Animals (Horses and Cows)
- 2 Bulldozers
- Bone Ceratosaurus
- Fisher Price Little People
- Dog Figurine
- Vintage See 'n Say
- Van Truck
- Lego People
- Broken Train
- A Hopping Toy, similar to Flik from A Bug's Life
- Purple Apatosaurus
- Red Velociraptor
- Plush lion
- A toy version of Mr. Ray from Finding Nemo appears.
- Some of the toys from Tin Toy cower under a table as the children storm through the door.
- There is a Lightning McQueen toy made out of wood.
- A kid in the daycare has a T-shirt with a "95" on it. This is the year the original Toy Story movie came out (1995) and Lightning McQueen's number.
- A Luxo Ball appears on a tile outside.
- Lee Unkrich, the director of Toy Story 3 does the voice of a jack in the box. The jack in the box has only one line.
- One of the cars in Cars is sponsored by Re-Volting. The toys at Sunnyside were gambling with Re-Volting batteries.
- In the credits, a Luxo Ball can be seen being bounced by the toys during a party in the sandbox.
- Having smaller kids in the Caterpillar Room and bigger kids in the Butterfly Room is a reference to how caterpillars turn to butterflies. When small kids get older, they become big kids. When caterpillars get older, they become butterflies.
- The "weaving" of the cubby bins in the Caterpillar Room resemble prison bars.
- One of the memory orbs seen in Inside Out shows Riley playing on a playground which is almost identical to the playground of the daycare.