The present invention is directed to an interactive toy generally including a body having a body section and a head section. Generally, the body resembles an animal, such as a horse, or popular fictional characters. The body section includes a preformed engagement surface that can be secured to a wearer. The body section further includes an arcuate lower surface whereby the interactive toy can be rocked forward and back when placed on a generally flat surface. The toy can also include an internal support structure helping to define the engagement surface as well as limiting movement of the head section. The interactive toy can also include an audio device for replaying recorded sounds such as animal sounds, voice recordings, nature sounds, and the like. Preferably, the sounds are manually initiated by a child by pulling, pushing, pressing, and the like, on a part or portion of the animal body.