A water and bubble toy includes a water projecting assembly and a bubble generating assembly. Water is stored in a water reservoir located in a rear handle of the toy while bubble solution is stored in a detachable reservoir. The water generating assembly is operated by a lever located toward an upper end of the toy. When the lever is pulled, the lever activates a first pump that expels water from the toy. The bubble generating assembly is operated by a finger trigger that activates an electric motor, which powers a second pump and a fan. The second pump pumps bubble solution to a ring and the bubble solution coats the ring. The fan blows air through the ring and helps generate and propel bubbles from the ring.