A purse that converts into a doll bed, having an upwardly facing basket; fabric mounted in the basket and which extends upwardly from the basket to form an upwardly facing container that may serve as either a purse or a doll bed; straps secured to the upper end of one of the fabric or the basket so that the combination purse and doll bed may be readily carried; the fabric of the purse extends upwardly sufficiently so that the fabric may form a purse or be folded outwardly to form a doll bed; and a fabric hood secured to the interior of the fabric which may lay concave when the fabric is formed into a purse or be lifted to serve as a toy sunshade for a doll when the fabric is formed into a doll bed.