Smart Toys can be described as modern-day’s toys, which own artificial intelligence and contain a microprocessor, volatile or nonvolatile memory units, and input and output devices. These toys are generally confused with educational toys, which do not have artificial intelligenceand are used mainly for the purpose of education. For example, a rhyme narrating toy cannot be considered a smart toy, although it is combined with microprocessors. Smart toys are merged with speech recognition and speech synthesizers, which can be easily applied in a software and hardware. In addition, beams are being provided in many of the modern toys, which allow them to respond to their surroundings, thereby making them more accurate.