Rags is a creation of Mokey Fraggle which makes its only appearance in the Fraggle Rock episode, Mokey's Funeral, intended as part of Mokey's plan to fool Junior Gorg. It is a rag doll that resembles Mokey (though it does show some signs of autonomy), causing the other Fraggles to mistake it for her.
Mokey constructs Rags and, despite her attachment to it, she throws it into a trap set by Junior Gorg intended to catch a Fraggle. Upon discovering Rags in his Fraggle-trap, Junior Gorg is devastated, believing that the inanimate Rags is an actual Fraggle that he has inadvertently killed with his trap. Because Mokey's fellow Fraggles were not in on Mokey's plan, and because they can only see Rags from a distance, they also mistake Rags for Mokey.