The invention provides a unique interactive play experience carried out utilizing a toy “wand” and/or other actuation/tracking device. In one embodiment, the wand incorporates a wireless transmitter and motion-sensitive circuitry adapted to actuate the transmitter in response to particular learned wand motions. The wand allows play participants to electronically and “magically” interact with their surrounding play environment simply by pointing, touching and/or using their wands in a particular manner to achieve desired goals or produce desired effects. In other embodiments, a seemingly magical wand toy is provided for enabling a user to electronically send and receive information to and from other wand toys, a master system and/or to actuate various play effects within a play environment. The seemingly magical wand toy is configured to use a send/receive radio frequency communications protocol which provides a basic foundation for a complex, interactive entertainment system to create a seemingly magical interactive play experience.