The company said that while the toy had passed safety testing, a satin seam on the middle section of the dragon could allow stuffing to become accessible to young children.
About 33,600 units in the United States and 1,000 in Canada were affected by the weak seam.
Build-A-Bear noted that there had been no reports of safety incidents by consumers or injuries caused by the product.
Consumers who purchased a Starbrights Dragons are encouraged to return the toy to a Build-A-Bear Workshop to exchange it for "an available furry friend of their choice."
The product was sold between April and August of this year for $25.