The Ribbon is an item found in Fatty Bear's Birthday Surprise.
Fatty Bear's Birthday Surprise[]
Fatty Bear will need the ribbon after the puppy escapes from the gift box (her escape caused the original ribbon to break apart). Fatty Bear can find a new ribbon in the closet of Kayla's parents' bedroom. After Fatty Bear lures the puppy into the gift box, he will use the new ribbon to re-wrap the present and keep the puppy inside.
If the player didn't obtain the new ribbon prior to the puppy escaping, Fatty Bear will obtain the original ribbon as a reminder for himself that he needs to find a new ribbon for the gift box.