Context-based interactive toy

An interactive toy 120 for interacting with a user while a story is being read aloud from a book 110 is disclosed. The toy 120 includes a speech recognition unit that receives and detects certain triggering phrases as they are read aloud form a literary work. Upon detection of the triggering phrase the toy activates a pre-programmed response that supplements the narrative in the book. As well as being read aloud form a book the story may be played from a movie/video. The triggering phrase may have independent significance or may only have significance when combined with other phrases read aloud from the book or played in the movie/video. A plurality of triggering phrases may be used. The toy 120 may have an interior cavity (360 figure 3B) into which the speech recognition unit is at least partially positioned.