Wee Sing in Sillyville (1989)

Wee Sing In Sillyville (1996): A whimsical musical I was obsessed with as a kid, featuring a Basset Hound, colorful family feuds, and puppets.

Two children named Laurie and Scott, along with their dog Barney, magically enter their coloring book to help a woman named Sillywhim resolve the townspeople's differences. They encounter the four yellow Spurtlegurgles, the three blue Twirlypops, the two green Jingleheimers and three Fruggy Frogs, the family of red Bitty Booties and Purple Pasha and her menagerie. The primary message is that being different should never be a barrier to being friends.

https://en.wikipedia.org/wiki/Wee_Sing