The Mattel PlayBack programme will recover the materials taken from the toys and convert them into recycled content.
These recycled materials will be used in future Mattel products.
The company has committed to making all the plastic used in its products and packaging either recycled or bio-based by 2030.
Consumers can ship their old toys to Mattel in packages affixed with a free shipping label, which can be downloaded from the Mattel PlayBack web page.
The company will initially accept old toys from its Barbie, Matchbox and MEGA brands, with other brands to be added to the scheme at a later point.
Material recovered from the toys will either be repurposed as recycled content in new toys, or downcycled if hard to recycle.
Mattel president and chief sustainability officer Richard Dickson said: “Mattel toys are made to last and be passed on from generation to generation.
“A key part of our product design process is a relentless focus on innovation, and finding sustainable solutions is one significant way we are innovating.
“Our PlayBack programme is a great example of this, enabling us to turn materials from toys that have lived their useful life into recycled materials for new products.”
The programme will first be introduced in the US and Canada before being extended to France, Germany and the UK via third-party recycling partners.