Exclusive to Kamihama City, Small Kyubey—alternatively called Lil' Kyubey or Chiisana Kyubei—appears as a diminutive, youthful variant of standard Kyubey. Its white-furred form features four ears: one pair resembling a cat's and another akin to rabbit ears with pink-white gradients and red ovals, plus a hot pink egg-shaped oval on its back.

Unlike other Incubators, it communicates solely through song, emitting off-key lullabies referencing rumors and secrets. This entity actively guides magical girls through Uwasa labyrinths, disrupts witches with its melodies, and consistently aids Iroha Tamaki while fleeing other magical girls. Its existence ties intrinsically to Ui Tamaki, Iroha’s sister, whose disappearance erased her from public memory and physical records. Physical contact with Small Kyubey triggered Iroha’s fragmented recollection of her wish to heal Ui, implying the creature is Ui’s transformed or fragmented manifestation stemming from Iroha’s wish. Nemu Hiiragi safeguards this connection.

Small Kyubey’s song disorients witches, and it navigates labyrinthine Uwasa domains while restoring Ui-related memories for Iroha. It cannot survive beyond Kamihama’s boundaries; standard Incubators lose consciousness entering the city, confirming its independence from their hive mind and energy-harvesting objectives. Initially encountered as a mysterious labyrinth guide against rumor-linked witches, it evolved into a recognized resident of Mikazuki Villa, integrating into the magical girls' household.

In *Magia Record*, it functions as a playable character representing the player proxy, wielding Mikazuki Villa as a weapon and featuring the "Variable" attribute effect. It is noted as the game’s first genderless playable unit. Small Kyubey frequents Uwasa-generated labyrinths tied to Kamihama rumors, Mizuna Shrine, and interacts with figures like Yachiyo Nanami and Tsuruno Yui during such events.