This works well for Christmas parties or other gift-exchange parties, or perhaps would be a good way to distribute goodies. You will need a wrapped gift for every child that will be playing and music - a CD or cassette player will work best.

All the children sit in a circle and a wrapped gift (goodie) is given to one child in the circle. Start the music, and while the music plays the gift is passed around the circle like a 'hot potato', quickly so it doesn't 'burn' fingers. Randomly stop the music, and whichever child is holding the 'hot potato' when the music stops is out, but gets to keep and unwrap the gift.