A pet toy capable of dispensing catnip or similar substance. The toy comprises a compartment for holding the substance. The toy also comprises a movement-promoting element operative to move the compartment so the substance, or an aroma of the substance, may pass through a sifting hole of the compartment. One embodiment of the toy comprises a rotating element, such as a ball, rotating about a horizontal axis within a larger body as a result of propelling the toy across a horizontal surface. The rotating element includes the compartment holding the substance so that some of the substance escapes the compartment as a result of the rotation of the rotating element. Various alternative embodiments of the invention are also described.