The invention provides a unique interactive play experience carried out utilizing a toy "wand" and/or other actuation/tracking device. In one embodiment the wand incorporates a wireless transmitter and motion-sensitive circuitry adapted to actuate the transmitter in response to particular learned wand motions. The wand allows play participants to electronically and "magically" interact with their surrounding play environment simply by pointing, touching and/or using their wands in a particular manner to achieve desired goals or produce desired effects. Various wireless receivers or actuators are distributed throughout the play facility to support such wireless interaction and to facilitate full immersion in a fantasy experience in which participants can enjoy the realistic illusion of practicing, performing and mastering "real" magic.