Toy balloons in the form of compact capsules that expand into balloons upon inflation for recreational purposes; Protective storage capsules formed of sheet material specially adapted for toy balloons; Balloon containment devices made from foldable sheet material for toy balloons; Protective enclosures featuring a designated boundary region for toy balloon inflation tube access; Pre-configured sheet material containers specifically designed for storing and protecting deflated toy balloons; Capsules with engineered openings for toy balloon inflation access; Balloons; Hand-operated and electric air pumps for inflating toy balloon capsules, featuring specialized interfaces for engaging capsulated toy balloons; Mechanical inflation devices for use with capsulated toy balloons; Automatic toy balloon inflation apparatus with locking mechanisms; Inflation machines with flexible anchoring arms for securing toy balloon capsules