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Though the The Simpsons is itself a fictional show of fictional characters, there are also several characters within the show's universe who are fictional to the Simpsons characters themselves (see show-within-a-show).
Spoiler warning: Plot or ending details follow.
These include characters from TV and movies, as well as characters who appear on Simpsons halloween episodes, which do not follow the show's continuity.
The Happy Little Elves were an animated cartoon within the fictional Simpsons universe. They were crudely animated green elves in simplistic plots aimed at very young children. They starred in several straight-to-video movies. Baby Maggie Simpson was a fan, to the disgust of her older brother Bart Simpson. They were referenced in the early seasons of the show but dropped in later seasons.
The character of Hugo, Bart's evil twin, was introduced in the "Treehouse of Horror VII" episode of The Simpsons (airdate November 27, 1996). (Halloween episodes are not part of series' continuity.) In this episode, Bart and Lisa discover he has an evil twin brother who is living in their attic. Bart and Lisa investigate, but accidentally set Hugo free. When Bart's parents, Marge Simpson and Homer Simpson, get there, they immediately call Dr. Julius Hibbert, who explains Hugo's origin as Bart's evil conjoined twin. The adults leave to search for Hugo. Bart volunteers to stays home, thinking that would be the safest place for him. But a few minutes later he is captured by Hugo. The insane Hugo has a plan to sew himself and Bart back together, but is rescued by Marge, Homer, and Dr. Hibbert. Then Dr. Hibbert realizes that Hugo isn't the evil twin, it's Bart. Bart is then banished to the attic while Hugo is welcomed back to the family.
See Itchy & Scratchy.
Kang and Kodos are two aliens in all the Treehouse of Horror episodes. Kang and Kodos are seven-foot tall, continually drooling aliens from Rigel 4. They claim to be brother and sister. Their primary appearances are in the various "Treehouse of Horror" episodes, but they (or others of their race) have several cameos.
Kang is voiced by Harry Shearer, while Kodos is voiced by Dan Castellaneta. Another Rigelian, Serak the Preparer, was played by James Earl Jones.
Kang and Kodos are named after two characters from Star Trek.
Malibu Stacy is the doll in the animated series The Simpsons. It is comparable to a Barbie doll. On the show, Waylon Smithers of the Springfield Nuclear Power Plant owns the largest collection of Malibu Stacey dolls in Springfield.
See Radioactive Man (The Simpsons).