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This little fuzzbull is Chibi Totoro from "My Neighbour Totoro", the 1988 Japanese anime film written and directed by Hayao Miyazaki and produced by Studio Ghibli. The film follows the two young daughters of a professor and their adventures with friendly forest spirits in postwar rural Japan. Chibi Totoro is the smallest of the Totoros, and runs very quickly and can disappear and reappear when it wants to.
Imported from Japan. Measures approximately 2" tall.