So the movie was a 80's 90's film. I remember it being like Strawberry Short Cake or like Hugga Bunch Characters where the characters where costume characters with big curly hair and also hand two real kids a Brother and a sister. Looking for maybe a baby brother that was taken by the villain. I also remember that the villain could had been a male character. This character was not a costume character but more like a actor with prosthetics more alien like. I also remember that these kids where not in the real world but in a Cloud Fantasy Land . Now here is a list of movie that are not what I'm talking about

Rose Petal Place

Hugga Bunch

The garbage pail kids


Dark Crystal

If anyone can figure this one out, man you would be awesome!! Haha.
I've been trying to think of it for a while now, and nothing is coming to mind.