We took our now 4 yr old daughter on the Disney Magic when she was 2 and will be sailing on the Disney Dream in Dec 2011 when our youngest will be 2. The cast members at the Flounder's Reef Nursery do a wonderful job of entertaining the toddlers! We took our daughter 3 times and once she got over the initial separation anxiety, she had fun playing with the toys and the other kids. One thing we found out is that because of the limited space in the nursery, when the 3-7 yr olds weren't using the Oceaneer Club, they would take the little ones in to let them play. There were also several nights that they offered "Toddler Time" in the Oceaneer Club where parents could come in and play with the toddlers. My daughter loved those nights because she got to go down the big slide! She also loved that there were so many opportunities to meet the characters - especially all of the princesses. The only problem we had was that she was about 3/4 of an inch too short for the Mickey Pool slide and we had to deal with lots of tears when she was told she couldn't go down. Watch out for age restrictions on a lot of the shore excursions too.