An animated action toy for young children and the like includes a doll having a hollow body with a head having a face with a mouth and movable lips. An air bladder is mounted in the doll's body and is interconnected to move the lips in response to changes in volume. In addition, an electrical speaker is carried in the body of the doll to provide sound animation. The doll is associated with a remote telephone handset which includes a microphone and a handle portion which includes a lever for activating a fluid pump. An elongated flexible connector is provided between the doll and the handset and a pneumatic tube is included in the connector for communication between the pump and the air bladder with an electrical cord provided for interconnecting the microphone in the handset and the speaker in the doll's body.During play, the handset is held in the hand like a telephone while speaking into the microphone and actuating the hand pump. This results in moving the lips of the remote doll as the sound animation is provided by the speaker in the doll's body.