The Gypsy or Indian Puppet is one of the puppets Andre Toulon has in his trunk that he hides from the Nazis in a secret hiding place in his room at the Bodega Bay Inn during the second World War, shortly before his suicide. It is unknown if the Indian puppet was alive, but Toulon seemed concerned that this one wasn't found by the Nazis so it must have been of some importance. The last time the Indian Puppet was seen was when Danny Coogan found the puppets he took them home. It is possible that he kept it.
The Indian Puppet was seen in a Nazi collector's shelf along with Freak, Kamikaze, Bombshell, Blitzkreig, Weremacht, Ninja and Tank with no explanation of how they got there other than the man has been obsessed with tracking down all of the puppets that were once alive to put in glass cases.