"I was privileged to finish, complete, and perfect the old "Baby World" heads from 1969, give the 4-inch baby a body, and later even sculpt the body and the head for the 7-inch Rosebud Baby" Martha Armstrong-Hand Doll Reader February 98
In truth the project of these dolls began in 1969. The team had made prototypes of heads for a 4-inch baby and everything a baby could need, cribs, bassinets and buggies but the project dropped when they realized in a child-test of the smallness of the pieces.
In 1967 Mattel bought the english company Rosebud, in Wellingborough, a company renowned for his fine dolls known as Rosebud dolls. First, the company was Rosebud-Mattel but in the early 70s Mattel dropped the word Rosebud and when the former factory asked Mattel if they could use the name Rosebud Mattel didn't allow it.
After some time the Mattel's "Baby World" project was retaken under the name of Rosebud Dolls: "By 1975, it was revived under the capable direction of Virginia Sargent who already showed her tremendous talent in directing and costuming The Sunshine Family Block. Mattel had acquired the British firm Rosebud, and the baby project became Rosebud Babies. In Virginia's hands, the babies lived in a more or less Victorian-lacy world, with furniture to fit the image" Martha Armstrong-Hand Doll Reader February 98
If the reason why Mattel named this project Rosebud dolls had something to do with the fact that the former english factory wanted to keep the name Rosebud or not isn't so clear but the line was short lived and the sculpts were later incorporated to Barbie line.
The first incorporation were the twins of a 80s family in which the babies had a world on their own pretty much like the Rosebud line less frilly and more in tune with their yuppie parents, The Heart Family. Things like cribs, a stroller or a Disney world Dumbo Ride could be bought separately aside of some baby cousins, and neighbours with the same Rosebud facemold. After that Lil' Friends in the 90s used the Rosebud facemold too until it was replaced by Kelly.
The last "Rosebuds" were seen on the #BarbieTeacher (95), that and #BarbieLovestoRead were the only Barbie dolls that included "Rosebud" babies.