I believe this is a Dzi bead. My father gave it to me saying they were given to him by his great grandparents. People believed the beads provide positive energy and my great-grandparents used them as toys. They are not merely meant to amuse babies or infants, they can also symbolize auspicious omens. For instance, traditional toys can consist of felt cut into animal shapes with scissors, small bows and arrows, a herring-bone tag, or a bell. They are often dangled from the ceiling spokes of a ger.
I believe this is a Dzi bead. My father gave it to me saying they were given to him by his great grandparents. People believed the beads provide positive energy and my great-grandparents used them as toys.