The Junk Lady appears in Labyrinth. She is one of the many Junk People piling massive amounts of miscellany upon their backs in the Junk City, just outside the gates of the Goblin City. Upon waking from her fruit-induced slumber, Sarah finds herself in The Land of Junk, confused and unsure what she had been searching for prior.
The Junk Lady further disorients Sarah, offering her a recreated version of her room in the real world and many of her toys and other possessions, all meant to permanently distract Sarah from her rescue of Toby. Sarah soon realizes the lack of importance in her items (calling them all "junk"), and escapes the facade, leaving her and continuing her quest for Toby.