Here's a cute little baby scrunchy toy that is super easy to make.
I had a little bit of this owl fabric leftover from another project. I just cut out one of the owls (the back is the blue fabric with tiny flowers), stuffed it half with stuffing and the other half with a noisy plastic/cellophane, and sewed it up.
It's a good size for little baby hands and the sound makes it interesting to squeeze. And of course it is harmless to put in their little mouth.