A pet toy and shelter is disclosed. An example pet toy and shelter may include a collapsible housing having a support structure, and at least one passage formed therein for entry and exit of a pet. The pet toy and shelter may also include a fringe curtain to at least partially cover the passage in the collapsible housing, the fringe curtain having a plurality of strips. The collapsible housing is configured to be oriented both upright and upside down so that the fringe curtain provides cover, a hiding place, a curtain from which to look out or through, shelter for the pet to relax and sleep in, and entertainment for the pet.
