As salamu alaykom respected AlimI would like to ask the permissibility of making simple soft toys for children by knitting with wool or from sewing with fabric such as dolls or rabbits, teddy bears ect? Is it permissible to make these toys with a face by using buttons as eyes and stitching a small line with thread to resemble a mouth?May Allah azza wa jal bless you and your family abundantly.

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

There is no harm in produce dolls to play with that are made from fabric or wool, and the like. ‘Aa’ishah narrated that when the Prophet arrived after the expedition of Tabook or Khaybar (the doubt is from the narrator on her behalf), the wind raised one end of a curtain which was hung in front of her store-room, revealing some dolls which belonged to her. He asked, “What is this?” She replied, "My dolls.” Among them, he saw a horse with wings made of rags and asked, “What is this that I see among them?" She replied, “A horse.” He asked, “What is this that it has on?” She replied, “Two wings.” He asked with astonishment, “A horse with two wings?” She replied, "Have you not heard that Solomon had horses with wings?” She then said, “Thereupon the Prophet laughed so heartily that I could see his molar teeth.” [Abu Daawood and An-Nasaa’i; and Al-Albaani classified it as authentic]

Making toys as dolls from fabric and the like, is exempted from the general prohibition of making images. Ibn Hajar said in his book Fat-h Al-Baari when commenting on the Hadeeth by ‘Aa’ishah : “The scholars stated that the following narration: ‘I used to play with dolls with some of my female friends…’ is evidence that it is permissible to possess dolls and play with them. This is exempted from the general prohibition of making images. ‘Iyaadh authoritatively stated this, and he quoted it from the majority of the scholars.” [End of quote]

This Hadeeth does not mention whether or not those horses and dolls had what looked like a mouth and eyes. However, it appears that exempting those toys from the prohibition is general for toys, even though they are of living being.

Allah knows best.