An animated toy with articulated moving parts in a package is disclosed. An opening in the package allows a person to operate a switch to activate the toy. When the toy is activated, the moving articulated parts can be observed through openings in the package or alternatively through transparent sections in the package. In addition, lights can be activated and flashed and an annunciator can be employed to emit sounds which are seen and heard by the person while the animated toy is in the package. In another embodiment, the front side of the package is open and the toy is secured to the back side with a band, allowing for access to activate the toy and to observe the moving articulated parts through the open side.