Old Man Touchy is a prisoner held in the dungeon beneath the Dreamland Castle.
He's a strange, perverted old man with no eyes, who has a habit of touching anyone or anything, as his power is to identify things he's touched. He presumably groped or molested the wrong person, which led to King Zøg having him thrown into the dungeon. However, he appears as a kind and fun man, comforting King Zog in a later scene. Zøg also occasionally calls upon Touchy's services if he needs something investigated.
His first appearance is in To Thine Own Elf Be True, where King Zog uses him to find the truth of the Eternity Pendant. He reveals that the pendant is real, but the reason it's not working with Elfo's blood is because there is something off with Elfo. Touchy remarks that he is "not an elf, but also not not-an-elf" and that he hasn't touched anything like him. This news that he is not entirely an Elf comes as much as as shock to Elfo as it does to the other characters.
He also makes an appearance scrubbing himself with a sponge during the Wash Day segment in Part 2, Episode 5: Our Bodies, Our Elves. In the episode The Pitter-Patter of Little Feet, Zøg states that Old Man Touchy lost his eyes in a race down Dreamland with Yøg.
In a later episode he is released from the dungeon by Prince Derek on the condition that he is never to touch again. He agrees only to then yell "I lied!" and run away. He is later seen back in prison in Who Shot Elfo?