Toddler fancy dress is important because it nurtures creativity, imagination, and self-expression during a crucial stage of development. Dressing up allows young children to explore different roles, build their confidence, and practice social and communication skills through pretend play. It also supports cognitive and emotional growth by helping them understand new concepts and emotions while interacting with others. Beyond these developmental benefits, fancy dress makes events like parties and school activities more fun and memorable, giving toddlers a joyful way to feel included and celebrated.