No, it's not an episode of The Twilight Zone. One woman in the village of Nagoro makes doll versions of her neighbors whenever they depart, creating a village filled with dolls.
Fritz Schumann produced the short documentary Valley of the Dolls, in which Ayano Tsukimi explains why she crafts dolls to take the place of her neighbors as the town's population dwindles. Unfortunately, these textile doppelgängers don't quite immortalize the local departed; each one lasts just three years. But at least Ayano Tsukimi has her own doll ready for after she herself is gone.
[via Vimeo Staff Picks]