Toy store display at Funskool in Chennai, with shelves of toys and a large doll figure in the foreground
Toy store display at Funskool in Chennai. Photo by Helppublic, licensed under CC BY-SA 4.0.

Hottest Holiday Toys 2026: What Kids Want This Christmas

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The hottest holiday toys for 2026 have been revealed, with interactive tech toys, building sets and nostalgic throwbacks topping wish lists, according to retail trend reports. Toy retailers say demand is strong for STEM kits, plush collectibles and licensed merchandise tied to popular films and streaming shows. Classic brands continue to perform well, with building block sets and dolls remaining perennial favourites. New for 2026 are AI-enhanced companions and augmented reality playsets, which have captured the imagination of older children. Parents are advised to shop early for the most popular items, as supply constraints could lead to sellouts closer to Christmas. Retailers are also promoting value ranges, with many top toys priced under $50. The annual toy lists, published by major retailers, are closely watched by parents and gift-givers planning their holiday shopping.

Related reading: Christmas Gifts Under $25 That Look Far More Expensive and Holiday Spending 2026 to Top $1 Trillion, NRF Forecasts.

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