All these life size puppet wind up in a dungeon that looks like it is the size of a studio. I think this film is from the 60's or 70's but not totally sure. I wish I could remember more of the plot line, but it was a really really long time ago

Wild guess,.

Pufnstuf (70)

Omg I think this is it. I remembered that there was a TV show of this but didn't realize I was watching the movie version with mama cas... thank you so much:)