This relic is puzzling on a couple different levels. It's part of a line of Hasbro dolls from the late 60s called Kooky Spookys. They were glow in the dark ghost finger puppets with a groovy, hippie theme.

Pictured here is Mama Caskit, in a strange nod to then super-star Mama Cass. Created several years before her untimely death, the reference is not quite so morbid as just plain strange. Also in the series was a figure named Tina Terror, in a supposed reference to Tina Turner.