A toy grenade has a container enclosed in a casing consisting of two separable half oval-shaped casings. The container is filled with a mixture of powder and color dye and compressed air. The top of the container is normally retained by a spring biased elongated rod pressed down by a pivotal handle which is mounted by a removable pull pin. The grenade may be activated by removing the pull pin such that the elongated rod will retract to open the top of the container so that the compressed air will cause two casing halves to separate and the mixture of powder and color dye will spread in the air over the intended target area.