An interactive system for teaching, entertaining, and habituating a child utilizes an interactive entity such as a doll, the doll having input and output elements and control circuitry adapted for driving the I/O elements, and a bi-directional communication link to a personal computer (PC). Scripted data stored at the computer directs doll activity and verbal articulation, and utilizes response from the child through the doll to the PC in directing output to the doll. The communication between the doll and the PC treats the doll as a peripheral device. In specific embodiments the interactive doll has servo-mechanisms for providing doll motion, such as eye and mouth and limb movement, which may be coordinated with verbalization in different scripts by commands retrieved at the computer and sent to the doll. In a preferred embodiment environments and applications are provided on CD-ROM disks which may also provide the operating application for the interactive doll system. Systems may be adapted for a broad range of functionality, such as acquaintance of a child with foreign languages, story telling, indirect interaction between an adult and a child through the medium of the doll, and much more.