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Handy is an orange beaver with unexplained amputated arms (thus his name). The stumps are covered with bandages. He wears a tool belt and a yellow worker's helmet (the typical dress of most construction workers).
Despite his lack of hands, he is still capable of building many things big or small, though we never actually see him build it in the first place - it's usually off-screen, very similar to Cro-Marmot moving around off-screen (with the exceptions of Wheelin' and Dealin' and Don't Yank My Chain, where he is seen putting the final touches on his race car and steering another car). Usually, whenever he builds something for the female characters, they are pleased and often thank him by hugging him for it, like Petunia from House Warming and Giggles from Home Is Where the Hurt Is. This has led some fans to believe that they have a crush on him and in terms of Petunia, it is correct as both are in a romantic relationship.
Whenever he is actually seen trying to do something which would usually require hands, he fails and pulls a frustrated look and an annoyed grunt at the camera, indicating that he forgot that he doesn't have hands. This has become a running gag in the series. Usually when he finds a compromise, it will lead to his own death and sometimes the death of others. As he has bandages on what is left of his arms, it can be assumed that he lost them in a work-related accident. He also seems to feel no shock or remorse at seeing others die or get injured, with the exceptions of Petunia and The Mole.
Handy has gained an interest in flying in the TV series, as seen in Who's to Flame?, Gems the Breaks, A Change of Heart, and Hear Today, Gone Tomorrow. Sometimes he stays in the air from when he first appears in the episode until his death.
Handy’s grumpy side is more prevalent when he’s interacting with other characters. In A Hole Lott’s Love, he is easily infuriated when Pop can’t understand his directions. In Easy Comb, Easy Go, Disco Bear and Handy are yelling at each other. In Double Whammey Part 1, when Flippy gives him a glove for wining a test-you-strength game, Handy is offended by this and gets grumpy. He, along with Sniffles and Flippy, also willing throws Lumpy out of the rocket in Happy Trails: Jumping The Shark.
Handy is actually very intelligent. In The Way You Make Me Wheel Handy installs a new tire on Lumpy's car. In Shard at Work, In an attempt to save himself from drowning, he repeatedly bangs his head against a wall to break the fish bowl. In The Wrong Side of the Tracks, Unlike Cuddles, Handy ducks his head when the ride reaches the tunnel. In Don't Yank My Chain, Immediately after he and The Mole got arrested, he tried to reach for the keys to unlock their cell door. He gets an idea to break their chain with a sledgehammer and a spike (though, it would've been better if The Mole was the one holding the spike). Later in the episode, he tells The Mole to get in the water and to leave their ball on the log so when the log goes up the ramp to the saw, the ball will be cut in half, when his plan fails he uses his head to turn off the saw, instead of trying to use his hands to do it. He also tries to break the chain by letting a train run over it (in real life this would've worked). In Concrete Solution, When he struggles to open his truck's door, he simply exits his truck by squeezing through an open window.