An internally illuminated novelty device having an electronics module contained within a translucent elastic casing. The elastic casing has a hollow central region that defines an internal pocket. A plurality of protrusions extend outwardly from the central region so as to cushion the central region from experiencing any direct impact forces. The electronics module is disposed within the internal pocket so that the elastic casing surrounds the electronics module. The electronics module includes a housing, at least one light source, at least one battery, and a switch for activating and deactivating the light source. The switch is controlled by selectively compressing the housing. Since the housing is within the elastic casing, the switch can be controlled by selectively squeezing the elastic casing. When activated, the light source illuminates the interior of the elastic casing, thereby internally illuminating the novelty device.