Circus-Themed Party

To create the right effect, set up a "circus tent" in the largest area in your home. Hang multi-colored crepe paper from the center of your ceiling, to the sides of the room, to all of the corners. Let the paper hang down from the ceiling and the walls to look like the center of a circus tent. After that is complete, hang posters of animals (particularly elephants, lions, tigers and monkeys) around the room. Obtain three hula hoops and place them in the center of the room to resemble three rings. Create cages out of cardboard boxes, and paint them with bright colors. Fill the insides with stuffed animals. For added entertainment, you can hire a clown or dress up as one for the party. In addition, elect an adult at your party to be in charge of activities, such as face painting for the children.

Petting Zoo Party

If your 2-year-old loves animals, consider having a petting zoo party to celebrate the birthday. The children will not only enjoy interacting with the animals, but also their friends in an educative party setting. Petting zoos can usually arrange to have select animals brought to parties or picnics at private homes. Animals recommended for a 2-year-old petting zoo party are rabbits, chicks, ducks, sheep, goats and pigs. Ponies should be excluded from a party catering to very young children, as toddlers may be frightened and it may be a physical liability should an accident occur whilst a child is riding a pony.

Bounce House

Inflatable bounce houses not only make attractive centerpieces at a 2-year-old child's birthday party, but also are a big hit among children of a variety of ages. Bounce houses are effective because they allow children to jump around in a safe environment, and are also fun exercise tools that help burn off excess energy. Bounce houses can be rented from a variety of vendors -- if parents are not interested in purchasing them -- and can be checked out for up to eight hours a day. Fortunately, houses come in different sizes based on the age group being catered to. A smaller bounce house is recommended for 2-year-old children.

Bubble Party

Although simple, bubbles are always a big hit with 2-year-old children. Purchase small bottles of child-safe bubble solution, as well as accompanying bubble wands. In addition, purchase a bubble machine and extra bubble solution. Work on filling an entire room with bubbles, and have the toddlers at the party blow their own bubbles with wands. A simple game of trying to pop the bubbles before they hit the ground, or having them catch the bubbles with their wands are two effective ways of keeping the children entertained and engaged in the party setting.