basically the mother had conjoined twins but one died so the other can live, the one alive wanted to have a sister but the mom said she's already with her so she's confused with what that means. Hearing a rumor bad kids get dragged to the factory she checks it out for her sister, while there she sees her and takes her home. The spirit then learns she was never alive from the start and goes poof after the little one goes shopping. Her subconscious of being alone/without a sister gave it life (like an imaginary friend) and talked to it after accepting the facts she tosses the doll