- "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 priviledge of being played with by nicer kids in the Butterfly Room while the rest, especially Andy's toys, were subjected to being abused and beaten 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 were to be locked up in the Caterpillar Room for eternity. Sometime after Lotso was done away with, Ken and Barbie revolutionized Sunnyside and became its new leaders. They restored the daycare to its original greatness, and even 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 was where the older kids being taken care of were kept. They were civilized and knew how to play peacefully with their toys. This is where most donated toys were dropped off originally. The Butterfly Room had boxes full of scraps and spare parts in case any toys were broken and was also the room where Ken's Dream House was. Younger children and toddlers were kept in the Caterpillar Room, and this is where Lotso and his gang brought new toys so they themselves would not have to be mishandled by the toddlers. There was also a Vending Machine down the hall from the Caterpillar Room where Lotso and his gang would have secret meetings at night and gamble. Sunnyside Daycare was complete with a playground and a garden, as well as a trash 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, now removed)
- Ken (new and current leader, formerly Lotso's second-in-command)
- Barbie (new resident, Ken's girlfriend and co-leader)
- Big Baby (formerly Lotso's third-in-command)
- Twitch (formerly Lotso's henchman)
- Chunk (formerly Lotso's henchman)
- Sparks (formerly Lotso's henchman)
- Stretch (formerly Lotso's henchwoman)
- 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 Dinosaur
- Fisher Price Little People
- Dog Figurine
- Vintage See N Say
- Van Truck
- Lego People
- 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.
- An older Boo (from Monsters, Inc.) is seen in the Butterfly Room.
- There is a tractor toy in the daycare that looks like the tractor from Cars.
- 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.