A pet toy with one or more treat holding receptacles is provided. A receptacle generally conforms to the outer surface or shape of the pet toy, and extends into the interior of the pet toy for holding a primary treat. The receptacle has a plurality of interior engaging surfaces that frictionally hold the primary treat in a desired orientation. An opening is formed through the receptacle for loading secondary treats into an interior of the pet toy. The primary treat has an exposed portion shaped and sized to provide a desired degree of difficulty for an animal to remove the primary treat from the corresponding receptacle. The portion of the primary treat in contact with the engaging surfaces of the receptacle forms a cap or closure, and when all or part of the primary treat is removed, the secondary treats may be dispensed through the opening of the receptacle.