Craggles are the inhabitants of Craggle Lagoon, located near Fraggle Rock. They were introduced in the Fraggle Rock: Back to the Rock episode "Craggle Lagoon."
The Craggles closely resemble Fraggles, but have a number of differences. All Craggles have smooth hair rather than their frizzy-haired counterparts. They always dress in a monotone style set to their individual colors, and all have a heavily-sleepy demeanor. Unlike the Fraggles, the Craggles don't have baloobiuses.
In the episode "The Giggle Gaggle Games," Mokey attempts to find common ground with the Fraggles and Craggles, using the information she's learned in a book. Instead of enjoying the various games the Fraggles partake in, the Craggles are very disinterested, even to the point of yawning at Red's athletic prowess.
Their reactions are in no way meant to be personal attacks. As the Fraggles learn, Craggles sleep for most of the day. They prefer to play in a shared dreamspace, a sort of abstract version of the Fraggle world. In these dreams, the Craggles are much more active and dress in a vivid spectrum of colors.