Smiley is a non-threatening, sentient but naïve smiley face medallion who is happy to live his own purpose in his existence. He was intended to be rewarded to "The Greatest Puppet in the World." Unfortunatley, Smiley misunderstood the well intending Heather (who was trying to tell Smiley to reward himself to said puppet) and thought it meant he was the Greatest Puppet in the World. This caused him to become power-mad, and turned into the game's ghastly antagonist, Dark Demon.He jumped on Headdy at the end.