A virtual world toy system includes a physical doll and physical props that may be used in conjunction with a virtual world unit. The virtual world unit provides a portal through which the physical doll may enter and explore a virtual world under a user's guidance and control. The physical doll and props may be played with by a user in the real world; however, the physical doll and props also may be placed into the virtual world unit where they manifest themselves in a virtual world presented by the virtual world unit. Once in the virtual world, the virtual world unit provides a virtual representation of the physical doll and props to a user. In addition, the virtual world unit provides an interface to command, assist, direct, and/or influence the virtual doll's interaction with the virtual world. Two or more virtual world units may be connected together so that multiple users may interact together within the virtual world.