A system and method for simulating a wide variety of different toy furniture items including a plurality of three-dimensional predetermined shaped members wherein at least some of the predetermined shaped members are adaptable to be positioned and repositioned adjacent to other shaped members in a plurality of different configurations to simulate a plurality of different furniture items. The present system and method further includes providing a plurality of slipcovers having indicia associated therewith which are shaped and dimensioned respectively to be positioned over at least one of the plurality of shaped members to simulate the particular furniture item or other home/business furnishing depicted on the slipcover, and providing at least one wall board having indicia associated therewith for simulating a particular room setting, the wall board being used in conjunction with the system components to simulate different room settings.