Retired licensee Trevor Roberts, 59, from Towyn, bought a flower style windmill for 18 month-old Jake, but it soon became apparent the toy was unsafe.
After only a couple of minutes the toddler had managed to pull the plastic coating off one of the petals, revealing sharp metal underneath.
Mr Roberts, who ran the Crescent and Schooner pubs in Rhyl, said: "Jake had the toy for a couple of minutes and he pulled off one of the plastic petals. I noticed, grabbed it and took it off him.
"He is at the age were he puts everything in his hand in his mouth, if that would have happened he would have done some real a damage.
"I really think if we hadn't got if off him he could have really hurt himself. He had a lucky escape, he really is a lucky boy. The metal underneath is too sharp, just looking at it sends shivers down my spine."
The toy, which did not feature a CE mark, which guarantees toy safety, is currently being investigated by Conwy County Borough Council's Trading Standards department.
Mr Roberts said: "He could have put his eye out and he could have hurt another baby by accident.
"For a toddler to pull the plastic coating off doesn't bear thinking about, I hope trading standards do something about it. It is a lethal weapon."