The recall covers about 284,000 "Colorful Hearts Teddy" bears sold in the United States and more than 13,000 sold in Canada.
On the Build-A-Bear website, it explains that certain production runs of the bear used substandard fabric which can tear around the eye.
That could result in the eye falling out, leading to a potential choking hazard.
The Chinese-made bear was sold between April and this month.
Consumers can return the bear to any Build-A-Bear store and receive a coupon for any available stuffed animal of your choice.