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 apprenticing. After Sophie leaves the shop, Fanny meets a rich man and marries him, and as a consequence sells the shop.
She is replaced in the movie by Honey Hatter.