A personalized souvenir producing interactive kiosk system and method of producing a personalized souvenir using the personalized souvenir producing interactive kiosk system. The system includes a vending machine-like kiosk configured to communicate with a user's electronic device, such as a smartphone, to accept an upload of a user-selected digital image. The kiosk then creates a personalized souvenir in the form of a refrigerator magnet using the digital image and printing the digital image on a section of magnetic sheeting.