An interactive toy unicorn is disclosed, where the unicorn can emit sounds and flap its wings. Pressing a button on the unicorn's head, where this button also doubles as the unicorn's horn, will trigger this functionality. Alternatively, the unicorn will emit sound and flap its wings if a magnet is placed over a magnetic switch located in the nose of the unicorn. This magnet can be placed inside of a toy wand, to give a magical effect to the toy unicorn. Lights can be placed inside the wings and light up when the wings flap.