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Ted is the deuteragonist of the film franchise of the same name. He is John's brother-like best friend. When he used to be a child, he was formerly named Teddy.
As a child, Ted was a friendly, selfless, giving bear who claimed that John was his best friend forever and then he grew fame, guest-starring on The Johnny Carson Show. No matter how famous he became, Teddy never forgot about his friendship with John and has always been at his side.
However, as he grew up, Ted became an irresponsible, toxic waste as he was caught with mushrooms and him being sent to jail, and after that, he has been drinking beer and smoking marijuana with John on the couch watching their favorite movie Flash Gordon. Despite this, he is still a very big-hearted and lovable bear, who always loves and cares for his friends.
In 1985, Ted is first given to John as a Christmas present and is named Teddy by the delighted boy. That night, John tells the inanimate Teddy he wishes he could really talk so they can be best friends "forever and ever" before going to sleep. The wish coincides with a shooting star and Teddy is brought to life.
The next morning, John wakes up and realizes that Teddy is not in bed with him. He gets out of his bed and searches everywhere in his room for Teddy. Soon, John discovers the young bear on the ground, alive and talking on his own. He tells John to hug him since he is his best friend. Startled, John terrifyingly asks Teddy if he just talked, to which he tells John not to look so surprised as he had wished for it. Now overjoyed since this means they can be friends forever, John hugs Teddy and then runs into the kitchen to tell his parents the good news. However, they do not believe him and instead humor him, with his mother Helen saying in a fake amazed tone, "Really? Well, isn't that exciting?". John insists that Teddy is really alive and proves it by introducing Teddy in front of his parents and the living bear wishes the parents a merry Christmas. Suddenly, John's parents get scared and John's father Steve tells John to come over to him, but John doesn't want to. Steve shouts at his son to come and he reluctantly does so, followed by his mother yelling at him to listen to his father. Then he tells his wife to get his gun, to which John is scared, fearfully forbidding him to do such thing and Teddy innocently asks if it is a "hugging gun". After Steve tells Helen to get his gun and call the police, Teddy apologizes for scaring them as he never meant to and explains that he just wanted him and John to be best friends. After John and Teddy manage to convince them, Steve and Helen warm up to Teddy as their second son and an amazed Helen tells Teddy he is a Christmas miracle and is just like the "baby Jesus."
The news about Teddy coming to life rapidly spreads worldwide. This, in turn, makes Teddy a famous celebrity and child star. He even gets a guest-starring role on The Johnny Carson Show. After being welcomed and shaking his hand politely, Carson tells Teddy that he was expecting him to be taller, to which Teddy jokingly rebuttals to the host that he thought he was going to be funnier. This makes Carson and the audience laugh hysterically at Teddy's comeback joke.
One rainy night, John and Teddy are in their tent inside, promising to be "thunder buddies" for life. Then John asks Teddy if he promises they will be friends forever and the young bear assures John he promises and will never back out.
- Ted is similar to Lotso from Disney/Pixar's Toy Story 3 in appearance, but their personalities differ; Ted is a selfish jerk on the outside, but deep down he is a caring bear who loves his friends dearly and Lotso appears to be a caring bear on the outside but on the inside, he is an evil monster who cares for no one but himself.