Altitude control of a toy flying vehicle intended for indoor hovering flight comprises providing a selected altitude level for the vehicle. A position control signal is transmitted from the vehicle towards a surface. A receiver in the vehicle receives the signal reflected from the surface. A level of the reflected signal by the receiver is determined, and a change of the reflected signal is an indicator of a change of altitude of the vehicle relative to the selected altitude level. The vehicle receiver communicates with the remote controller, and the remote controller can adjust and control speed and direction of the vehicle.