The aim of this study is to examine how the triadic relationship between children, toys and the educational context of a Waldorf preschool may contribute to children’s growing imagination. The toys provided at Waldorf preschools in general are simple objects, and the selection is limited. Still, the toys are supposed to stimulate the imagination of children. In this analysis, we draw on Iris Murdoch’s distinction between imagination and fantasy in order to highlight two qualities of the ability of imagination: Imagination implies openness and curiosity towards new ways of being and acting, and fantasy suggests a closed approach that offers few new possibilities. The distinction between these qualities enables us to examine how the relationship between children, toys and educational context opens or closes the children’s growing imagination. The study identifies three particular factors that influence the possibilities for children’s imagination. These are: a) the form of the toys; b) the placement of the toys; and c) the pedagogical intentions of the teachers and their interactions with the children.