The products, imported from China, included a five-pound (7.35-euro, 9.90-dollar) bracelet made of 93 percent lead, which is high enough to cause brain damage, and potentially kill a child that chewed on it, according to The Sunday Times. The recommended international safety limit is 0.06 percent.
"Immediate action was obviously taken to remove these dangerous products from our shops as soon as we became aware of the problem," a company spokeswoman said.
"We would never ever knowingly sell toxic jewellery to customers and take the health and safety of our customers extremely seriously.
"We are urgently reviewing our quality assurance process."
The Hamleys decision comes just days after US toy giant Mattel recalled 18 million Chinese-made products worldwide, citing serious concerns for children's safety.
In an alert earlier this month, Mattel's Fisher-Price subsidiary recalled nearly one million Chinese-made toys decorated with lead-based paint, which can harm children.