The New Zealand Herald reported the mother-of-two bought the toys from Kmart as a Christmas present for her sons.
She told the Herald she heard strange sounds in her house so went down to the children’s bedroom and saw the walkie-talkie on her son's bed.
She heard "a man making sexual moaning sounds" coming from the hand-held toy radio.
She told Herald senior journalist Mike Thorpe the noises then got even creepier.
"Clear sexual innuendos, just saying things like ‘Do you like sausages? I’m gonna come over, you’re gonna cook my sausage and I’m gonna make you eat it. Mmmm, I’m coming for you. I’m coming over to you now’. It went on for a good few minutes," she told the Herald.
The mother said she was not able to switch the toy off so she had to remove the batteries.
"From the moment the kids started playing with the walkie-talkie, the on button just was permanently stuck on," she told the Herald.
"So I was just running around the house trying to find a screwdriver so I could get the batteries out and, of course, the children were hearing it."
The toy had a maximum communication distance of 300m. The mum was worried the man may have been nearby so she locked all the doors.
She then rang the police who explained he may have been using a radio with a stronger frequency, allowing his signal to travel much further.
"But you just wouldn’t be able to reply back to them,” she told the Herald.
Police suggested changing the frequency of the walkie-talkies but the woman said the set only has one radio channel.
Police told the Herald the incident was reported on December 30 - but it wasn’t possible to investigate further as no lines of inquiry had been identified.
The mother said she also alerted Kmart about the incident.