Bandages is Baba's mummy fighter—basically a wrapped-up corpse who actually knows how to throw a punch. He fought third in the tournament and took on Yamcha, beating him handily. Goku was a different story though, and Bandages ended up on the losing end of that match.
Years later, he and Akkuman show up to lend Goku their energy so he can take down Majin Buu. They thought they were helping Mr. Satan at the time, which is kind of funny in hindsight.
The name's a play on the Japanese word mirra, which comes from the Portuguese word for myrrh—the embalming ointment used on mummies. Over time it just became the standard term for "mummy" in Japanese.
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