Pillow People and Pillow Pets were a line of stuffed rectangular toy pillows with faces designed on them that started around 1986. I would not say they were a huge hit, but for a year or two they were a very visible toy line in commercials.
It was an interesting idea for a line of toys because the accessories were pretty obvious, if you have the pillow, you are going to need some sheets and that is exactly what you could get to finish your Pillow People collection. I guess if they caught on in a bigger way we could have had Quilt Pals, Area Rug Buddies and Shower Curtain Chums.
I do not remember seeing the toys in the mall toy stores I visited and maybe that was because, like they say in this commercial, they were available in the home furnishings departments of stores. This is an interesting idea to attract parents to pick up a toy, but what kid would think to look there for one?
Recently a new line of Pillow Pets started showing up in TV commercials. I am not sure they are associated with the original Pillow People/Pets. They looked very different from the 1980s toy line.