A stuffed koala that comes alive when you touch his nose sounds like a kid's premise until you realize the show actually commits to two full worlds running parallel, each with their own logic and problems to solve. The magic isn't in the koala, it's in the fact that Sandy has a real friend who exists on the other side of a rule she discovered herself, and she gets to choose when to visit. That simple setup, played completely straight, is exactly why you keep watching past the first episode.
Ten-year-old Sandy Brown is staying with her grandmother while her father, an archaeologist, is away on a research trip. She receives a stuffed koala from him and finds that when she rubs noses with it, it turns into a real, talking koala named Blinky. Blinky has fled a kangaroo court in the magical Koalawalla Land and come to Earth to hide. All he carries is a magical watch that can stop time. His little sister Pinky soon joins him, and the adventures unfold both in Sandy's world and in Koalawalla Land. Along the way they meet two men chasing the magical talking bear, a lizard that hops back and forth between the magical realm and the real one, and a force of kangaroo police officers. The result is a lighthearted fantasy adventure comedy built around talking animals and trips between worlds.