Gorakhpur is situated in the eastern part of Uttar Pradesh in India near the Nepal border. Aurangabad, a small village is at a distance of 19 kilometres from Gorakhpur, which deserves special reference in terracotta toys. Among the clay products of Uttar Pradesh, clay figures of animals, gods and goddesses are made by local potters at Gorakhpur. Thousands of hands have received worldwide appreciation for the city of Gorakhpur. Gorakhpur focuses on the humble craft of terracotta toy making that enriches our daily life. Various faces, costumes, decoration is superb. Statues or idols are realistically produced for festivals. It is an art which touched the peacock of creativity, imagination in the hands of the master potter. The process of pottery making is briefly discussed. This paper concludes the main issues and challenges of craftsmen and discussed the conversation with academic workers, artists, craftsmen in the industry. The main point of the study is about various tools, skill, knowledge of materials, work styles are highlighted in it. Some possibilities for the development of the craftsmen are suggested here.