KoalaWalla Land is a parallel dimension inhabited by anthropomorphic koalas, kangaroos, platypi, cassowaries, kiwi, and frill-necked lizards. It is ruled by a wise old koala known as the High Dingy Doo. Humans aren't allowed in KoalaWalla Land (and in fact a human will be arrested and jailed on sight just for being in KoalaWalla Land), so Sandy has to wear a koala mask. A portal to KoalaWalla Land can be found at Ayers Rock. Pinkie also has the ability to create instant portals to KoalaWalla Land at any point, as well as portals back and forth through time, by utilizing the red lipstick in her magic cosmetic kit to draw an interdimensional hole in the time-space continuum.

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