Okay, this is driving me crazy.....I remember this movie from the 80's, it was an action movie, about a kid who had this action figure that could talk....and the both of them tried to stop some bad guys......I was really young, so I don't remember much. Sorry so vague, but does anyone have any idea what this movie is??  THAnks!!

I believe that was Small Soldiers. With a cameo by Dennis Leary. The Gorgonites and the Commando Elites. Chip Hazard. I think It was Kirsten Dunst's first movie.1998

That's probably it. If not, it could also be "The Indian In The Cupboard"... this little toy red indian plastic figure comes to life in that too. Again this was a 1995 movie.

Well, "Small Soldiers" was from 1998, but I also can't think of an 80's movie that fits the description.  But even thought it is late 1990's, it does have a "1980's feel" about it.  Very much like other "kid oriented movies" of that era, like Goonies, Cloak And Dagger, and War Games.

An interesting piece of casting in this movie was the voices for the toys.

Most of the voices of the "Soldiers" were the surviving cast members of "The Dirty Dozen".

The voices of the Gorgonites are mostly the cast members of "Spinal Tap".

And the "Gwendy" dolls (Barbie knock-offs) were voiced by Sarah Michelle-Gellar and Christina Ricci.

That's the film.

I think It was Kirsten Dunst's first movie.1998

Her first movie was New York Stories in 1989.