I can't recall a lot but I'm pretty sure it was early 80s. All I remember is
- Puppets.
- A princess having been captured by an evil sorceress.
- A small round fluffy guard dog type creature that was the princess's pet.
- An army or a prince was sent to rescue her.
There was a super dramatic ending. It was definitely intergalactic because the princess was taken to a far off planet.