A plush toy playfully animates animals, insects, reptiles, prehistoric creatures and the like having small light emitting diodes representing eyes. The eyes are fabricated LED housings with external surfaces constructed as substantially translucent covers having generally opaque regions representing iris/pupil and eyelid areas. The toy is provided with internal circuitry including a pressure switch activating a battery source for the LED's. A timer sets activation cycles. The fabrication of the eyes as covered housings results in a plush toy with softly illuminated eyes, safely enjoyed by children as nighttime companions in lieu of nightlights. This toy is particularly useful in a method of inducing a young user's sleep. When the circuit timer runs a cycle, the diode eye glow fades as the plush toy "falls asleep." The user may repeat the cycles until her/his own sleep is induced.