Puppet demons refer to a group of demons who possessed puppets for a show in Los Angeles sometime in 2003.
In 2003, Gregor Framkin, creator of the show Smile Time, made a deal with demons to increase ratings and save his show. However, at some point after the deal, the demons he summoned overpowered and took control of Framkin. The demons began using the puppets to drain the life force of children and planned to sell them in hell.
Very little was known of the species of demon who inhabited puppets, and whether they are limited only to puppets, or could possess other inanimate objects, or other lifeforms. One member of the group, however, was capable of controlling a human's speech and action by inserting a hand into the human as if the human was a puppet. Such was the control the demon assumed that it made a convincing display that the human in question was acting on his own accord.
These puppets drained the life force of children and planned to sell them to hell. They gave high value the life force of children because of the children's innocence. The life force they drained were kept in a Nest Egg, which also provided them with increased powers to control humans and to create defensive spells in their base of operations.
Although they were possessing puppets, the demons displayed considerable strength enough to match, or in some cases, even overpower fully grown demon hunter humans.
The demons were killed when the puppets they possessed were destroyed significantly, such as by gunshot and by being slashed by a blade.