- 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! You lied to Big Baby and you've been lying ever since!
- —Woody and Lotso argue about Daisy
- Lotso: Where did you get that?
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 as he shows Lotso the pendant with Daisy's name on it
When Woody stayed at Bonnie's house after Bonnie took him there, 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 who forgot Lotso, Big Baby, and Chuckles. They 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.
- It is unknown for now if Daisy still has the replacement Lotso, if she has either donated him or stored him away.
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