A toy balloon is a small balloon mostly used for child play, party decoration, and advertising. Toy balloons are usually made of rubber or aluminized plastic, and inflated with air or helium. They come in a great variety of sizes and shapes, but are most commonly 10 to 30 centimetres in diameter.

Most toy balloons are a simple oval-like shape. But balloon suppliers also offers other shapes for toy balloons. Some examples of other shapes are: "zeppelins" or "airships," where balloons are usually longer than wide; "espirals" or "rattlesnakes," similar to zeppelins, but much longer (not to be confused with balloons for twisting); "hearts," balloons with the shape of a heart; "dolls," two round shapes joined that represent a head and a body; "mouseheads," composed of three round parts, one for the head and two for the ears; "bunnyheads," similar to mouseheads but with long ears; "bunny balloons," which resemble a stuffed toy bunny, having a big long shape for the body, a smaller shape for the head, and two long shapes for the ears; "elephants," with two shapes for the body and the head, and a very long shape for the trunk; and "ducks," with a big shape for the body, a smaller round shape for the head and smaller shape for the beak. There are many other possible shapes, depending on the manufacturers.

There are balloons that are longer and more cylindrical. These long balloons are often twisted and bent into simple, or intricate shapes which will hold their form when released. Balloon artists are people who quickly twist balloons into familiar or abstract shapes using the techniques of balloon modelling, usually for profit.

Toy balloons are used as decorations and advertising space. Balloons are usually purchased in deflated form, however some party stores and vendors at special events will fill their balloons before selling them, this is called "balloon stuffing" where the balloons are filled with objects such as smaller balloons, teddy bears, etc.