What worked for my daughter was a light up teddy bear that we found on amazon three years ago. I recently looked it up again and it seems that the model bear we bought for only $12 a few years ago is no longer being made and the price for it on amazon is between $140 and $177. Crossing our fingers that ours doesn't break now, but on the bright side they've come out with newer models which has addressed some functionality issues from prior versions which is great.
If you do an amazon search for "cepia bear" you'll get a selection of available products. What's great about "Bear" is that it has an internal timer that kicks off after about ten minutes to save batteries and if my daughter wakes up in the middle of the night and is scared, all she has to do is reach over and give Bear's paw a squeeze and he lights up. Bear is soft and snugly and she sleeps with him every night.
Because we worried that bear would not survive the rough play of daytime activities, we've made it a rule that Bear is a "bed buddy" and is only to have at night. She LOVES him.