Fanny Hatter is Mr. Hatter's second wife who was once his shop assistant. She is only Martha's biological mother, though cares for all three children equally. After Mr. Hatter's death, she runs the hat shop for some time, with Sophie as an apprentice. Martha claims that Fanny is exploiting Sophie's talent for making hats, leaving Sophie to work in the shop while she goes off to have fun and spend the money Sophie makes. This is, however, later shown to be untrue, though she was rather careless of Sophie's well being, which led Sophie to feel like she was old before her time from constant, dull work. After Sophie leaves the shop, Fanny meets a rich man and marries him, and as a consequence sells the shop, unknowingly, to Howl. Howl later arranges for her and Sophies's sisters to come visit Sophie seemingly "by coincidence" to distract Sophie from "messing up" his plans to defeat the Witch of the Waste. 

She is replaced in the movie by Honey Hatter.