Baby's First Birthday
Invite their Toddler Friends

Decorations:
Balloons and streamers (remember, don't let young children play with latex balloons)

Cake and food:
Finger foods for toddlers
Big Cake with 1 candle

Goodie Bags:
Toddler geared toys and bubbles

Games and Activities:
(NOTE-these games are to be played by parent and child)
Baby Derby:  Have two contests, one for crawlers and one for toddlers.   Babies at one end, parents at the other.

Sing-alongs:  Parents sit with kids in a circle and sing their favorite kid songs.

Musical Balloon Freeze:  Have kids bop their balloon in the air to music.  When the music stops they must grab the balloons and freeze.

Bubble Catching:  Blow bubbles for the kids and let them "catch" them.

Peanut Butter Dough Creations: 
Make your creations and eat them!
1 cup peanut butter ~1 cup honey ~2 cups powdered milk (use just the powder)  Mix all the ingredients in a bowl.  If needed, add more powdered milk to make the dough workable.   (NOTE:  children under 1 and maybe 2 should not have honey, try using brown sugar and liquid milk to make it workable.  Also, make sure none of the children have PB allergies).

Spiral Kites:
Need paper plates, markers or crayons, yarn or string
Have the children decorate the plate with colors.  Next, have an adult cut out a spiral shape from the plate, leaving a 1 1/2" center circle.   Tie the string onto the center.  Let the kids "fly" their kites.