Kezia is the youngest of the three Burnell sisters, part of a wealthy family in a rural New Zealand village. Unlike her older, status-conscious siblings, Kezia focuses her attention on the small, realistic lamp inside the new toy rather than its grander features. She possesses an independent streak and privately questions the strict social boundaries enforced by her parents. Her natural empathy puts her at odds with the cliquish behavior of her peers.

Isabel is the eldest Burnell sister and the undisputed leader of her social circle at school. She leverages the arrival of the magnificent toy to solidify her popularity, carefully choosing which girls receive invitations to view it. She readily adopts her mother's prejudices and enjoys holding power over her less privileged classmates. She represents the conservative, class-conscious mindset of her parents' generation.

Lil is the older daughter of the local washerwoman and belongs to the poorest family in the rural village. She wears a dress constructed from the Burnells' discarded green tablecloth and a hat formerly owned by the postmistress. Her unusual, mismatched clothing makes her a frequent target for bullies. She assumes a protective role over her younger sister and responds to cruel taunts with a quiet, shamefaced smile rather than anger.

Else is the younger Kelvey sister. She rarely speaks, preferring to communicate by tugging on the back of Lil's skirt. She wears a long white dress resembling a nightgown and boys' boots, adding to her ostracization at school. She is quiet, solemn, and highly observant, maintaining a deep fascination with the doll's house despite knowing she is forbidden from seeing it.

Aunt Beryl lives with the Burnell family and helps supervise the children. She is highly conscious of class and propriety, taking pride in enforcing the social divisions of the village. She projects her own frustrations and hidden anxieties onto the children, finding relief in exerting authority over those she deems beneath her.

Lottie is the middle sibling of the wealthy Burnell family. She is passive and content to go along with whatever her older sister Isabel dictates. Lottie uses the family's newfound social power from the doll's house to elevate her own status among her classmates without having to do the leading herself.

Emmie is a classmate of the Burnell sisters who holds a slightly lower social rank than they do. She actively courts Isabel's favor to ensure her inclusion in the elite group. Emmie learns how to enforce social boundaries by watching the adults around her, and she eagerly participates in ostracizing the Kelvey girls to cement her own standing. She starts a rumor about Lil's future occupation to amuse her friends.

Lena is the daughter of a local dairy farmer and a member of Isabel Burnell's inner circle at school. She craves attention from her peers and tries to impress them by acting as a ringleader in bullying the Kelveys. When her initial insults fail to provoke a reaction, she readily escalates her cruelty by bringing up rumors about the Kelveys' father to secure the approval of the other girls.

Mrs. Burnell is the matriarch of the wealthy Burnell family. She firmly believes her family is superior to their neighbors and enforces strict rules about whom her daughters may interact with. She explicitly forbids Kezia from speaking to or inviting the Kelvey girls over, instilling the village's class prejudices into the next generation.

Mr. Burnell is the father of Isabel, Lottie, and Kezia. He shares his wife's conservative views regarding social class and helps establish the family's high status within the rural New Zealand village.

Mrs. Kelvey is the impoverished mother of Lil and Else. She travels from house to house in the village doing laundry to support her family, as her husband's whereabouts are unknown. She relies on the charity of her clients to clothe her daughters, resulting in the strange, mismatched hand-me-downs that make the girls targets for ridicule.

Mr. Kelvey is the absent father of Lil and Else. His whereabouts are unknown, though the village children repeat rumors that he is currently in prison, using this gossip as ammunition to bully his daughters.

Willie Brent is a man who corresponds with Aunt Beryl. He sends her a threatening letter demanding she meet him in Pulman's Bush, creating a source of private anxiety and fear that she subsequently projects onto the children around her.

Mrs. Hay is a former guest of the Burnell family. She sends the magnificent, intricately decorated doll's house as a thank-you gift for their hospitality, inadvertently setting off the social conflict among the children in the village.

Pat is a worker in the Burnell household who helps the family with practical tasks. He eagerly uses a penknife to open the heavy front of the new doll's house so the children can gaze at the fully furnished rooms inside.