Could be a really good short game with a bit more polish. SFX for the monsters would make it a lot better (Foot steps, munching sounds etc..). The game is quite quiet without sound effects. An intro would be good as well, the kid sitting in front of the TV and the puppet comes out of it? Instead of just jumping straight in with no context. The text in the beginning is too fast to be able to read it, gameplay wise, I think it would make more sense for it to show after the start menu.
I really like the art style and vibrant colors.