This chapter examines the general characteristics of and related recent research on smart toys. Smart toys can be defined as new forms of toys featuring both tangible objects and electronic components that facilitate two-way child-smart toy interactions to carry out purposeful tasks. In this chapter, smart toy based learning projects are discussed and the characteristics of smart toys as cognitive tools to facilitate learning are analyzed. This chapter also covers the relationship between smart toys and children´s developmental stages—with a particular focus on motivation—in order to understand smart toys´ potential effects on children.