Magnetic and electronic toy construction systems and elements are provided that include an assembly panels that have magnets located around the panel perimeter such that the dipole axes of magnets in a single panel are coplanar and intersect to define a polygon. To attach adjacent panels, ferromagnetic spheres are used such that the dipole axes of one magnet from each of the adjacent panels are collinear. Also disclosed is a magnetic construction element comprising a longitudinally extending rod formed of a non-magnetic material; a magnet holder disposed at an end of the rod; a magnet embedded in the magnet holder; and a ferromagnetic material disposed at an intermediate portion of the rod, the ferromagnetic material being formed of two generally hemispherical portions that are attached to each other with at least a portion of the non-magnetic material of the rod being disposed within the hemispherical portions.