The Goblin Queen is the secondary antagonist of The Princess and the Goblin. She is the wife of the Goblin King and the mother of Prince Froglip. The Goblin Queen always spoils her son so much, and she is the only goblin to ever wear shoes. Her shoes are made of rock, so instead of breaking them with a stone club, the mining boy Curdie ends up breaking it. However, she becomes no exception herself, as the reason why is shown: unlike the other goblins with one-toed feet, she has six toes on each foot and she despises that look. It begins first by Curdie (while being rescued by Princess Irene in the middle of following her Great-Great-Grandmother's magic thread) managing to remove one shoe, exposing the number of toes per foot; however, he doesn't succeed in removing the other shoe, as Irene's pet cat Turnip sniffs and licks her bare foot, and those wake her up, causing her to call the guards. Much later, during a battle with goblins, she tries to attack Curdie, but Turnip bites her leg, and they tumble down. Curdie then puts hoops over her, and with some kind of rock-breaking machine, breaks the other shoe, leaving her completely barefoot. She, still bound with hoops, rolls down while the soldiers sing (something all of the goblins hate). She implies a vow of revenge on the "sun people." During the act of flooding the mines, the Queen shoves other goblins. Eventually, she is shown to be washed away by the flood, alive. Never again is she seen.

The Goblin Queen is the last film role for Peggy Mount, as she died in 2001.