Babes in Toyland and Disney's "Pied Piper" are set in the same universe.
As Disney's classic short ends with the children being led into "Toyland", and the cave door being shut by the Piper, it could be that the children within Toyland grew up and made it's world their own. One of the main characters of "Babes in Toyland", Tom, is also referred to as the Piper's son.
