A multi-purpose insert designed to be used in conjunction with a conventional toy container or box for packaging, shipping and displaying a toy item. The insert includes a base piece, a cover piece and a holding piece, as well as a locking mechanism. The base piece has a main section with a raised platform and two end sections that are hingeably connected to the main section so that they can be folded up in a right angle relative to the main section. The insert also includes a cover piece which is placed over the toy item placed on the main section of the base piece, and a holder piece placed above the cover piece for keeping the two end sections in the upright position for retaining the toy item for packaging and shipping purposes. When the holding piece is removed, the two end sections of the base piece can be folded down for displaying the toy item on the raised platform of the main section of the base piece.