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Happy is a character from Rudolph's Shiny New Year. He is the Baby New Year who is destined to become "19-wonderful" as the old year passes. Born with abnormally oversized ears, his appearance causes great laughter from anyone present when he removes his top hat. Living in Father Time's castle, the palace residents and even his nurse, Nanny Nine O'Clock, are not immune from partaking in this act which crushes his feelings to the point where he just can't live with it anymore. He decides to run away to the Archipelago of Last Years.
Through the various years preserved in the islands of the Archipelago, Happy never finds anyone who can't laugh at his ears, and he finds himself constantly on the run. Eventually, Rudolph, who has been sent to track him down, catches up with him and helps him overcome his sensitivity issue with his own story as an outcast, and the fact that Happy's ears make people happy. With some help from Santa Claus, he makes it back across the Sands of Time just before the last stroke of midnight on December 31st so that he can become the New Year.