Telebug is a prototype toy that directly connects with a child and their environment to respond in a meaningful way. To better understand and connect with the child, Telebug uses an array of wireless sensors. To respond in an interesting way, Telebug moves and "speaks" according to the data from the child. My thesis argues that by knowing a little about the child and the child's surroundings, a toy like Telebug can respond to the child with more open-ended yet appropriate responses.