A method and apparatus is provided for molding a pet toy having one or more fabric inserts molded into a portion of the surface of the toy. The mold may comprise a cover plate, a cavity plate and a separator plate, the cavity plate including one or more projections and the separator plate including one or more complementary-shaped openings such that pieces of fabric placed on the projections may have skirt areas engaged by the engagement of the separator plate to the cavity plate. The fabric may stretch when the mold is filled with rubber or plastic to form discrete fabric-covered areas on the toy.