"Mr. Teddy" is the seventh story featured in the book Tales to Give You Goosebumps.
Willa is spoiled. Gina, Willa's older sister, accuses her mother of being too indulgent with Willa. Despite this, when Willa asks her mother for a teddy bear, she gets it. Willa takes the bear home. She names the toy Mr. Teddy and puts it on her bed, replacing her old teddy bear.
After spending one night with the bear, Willa wakes up to find that the toy has moved closer to the window. She suspects that her sister may have moved it. The next night, Willa makes sure to hold Mr. Teddy firmly as she falls asleep. When she wakes up, she finds that two of her decorative porcelain eggs are broken. Mr. Teddy is propped up next to the shattered trinkets. Willa looks for Gina, prepared to scold her, but she's already left for school. When Gina comes home at the end of the day, she denies breaking the eggs.
That night, Willa tucks Mr. Teddy firmly into bed with her. However, when she awakens the following morning, she is shocked. Mr. Teddy has moved once again, and her room has been disheveled. Clothing and other items are strewn about. Willa blames Gina, but she can't prove anything. Before going to sleep at the end of the day, Willa barricades her door. However, she wakes up to find her room completely wrecked the next day. Many of her favorite items and toys have been destroyed. Willa sees Mr. Teddy, and he is holding a doll's arm.
Willa runs to her mother and blames Gina, but Willa's mom informs her than Gina had been at a sleepover all night. Willa sprints to her room and tears apart Mr. Teddy, throwing his remains out a window. Willa retrieves Old Bear, her original teddy bear. As Willa hugs Old Bear, she doesn't see the smile form on his face. Old Bear won't let himself be replaced, and he hopes that Willa has learned her lesson.
- This story shares plot elements with Night of the Living Dummy.