Molluscum Contagiosum in toddlers is a mild viral infection that spreads through skin-to-skin contact, shared items like towels or toys, and scratching the bumps. It appears as small, smooth, flesh-colored or pearly bumps with a tiny central dimple, unlike eczema (which is itchy and red) or infections (which may be pus-filled). Most cases clear on their own, but a doctor should be seen if it spreads widely, lasts many months, becomes infected, or affects sensitive areas, and prevention includes avoiding scratching, good hygiene, and not sharing personal items.