A non-toxic, edible novelty fluid composition is disclosed which includes a polar system comprising at least one polar solvent selected from the group consisting of glycerol, one or more glycols, aqueous NaCl, KCl or other non-toxic salt solutions, and mixtures thereof, a non-polar system comprising at least one edible oil, and at least one dye soluble in either the polar or the non-polar system. The polar system and non-polar system are immiscible with respect with each other and provide a lava-type novelty fluid for decorative purposes. Because the fluid is non-toxic, may be safely incorporated into children's products, examples of which include writing instruments, pencil sharpeners and rulers.