'Mmkay Kmart. Subliminal messages or the guys at the castle making factory were high,' she captioned the photos.
Many users found the situation hilarious, with other mums suggesting the long white object atop the hoses head looked like a penis.
'Wow. I think someone got distracted at work,' one wrote.
'My son calls unicorns 'hornycorns'. Perhaps he's onto something,' commented another.
However, other users were quick to point out that the misinterpreted shape was meant to depict a plume.
'Is that not a white feather?' one woman wrote.
'In what world does that look like a f***ing feather?' asked another.
'That's the most penis looking feather I've ever seen,' said a third.
The bizarre find follows reports of another recent x-rated gaffe from Kmart when a Queensland mum discovered a list of sex positions inside a Frozen-themed diary she had purchased her daughter.
Toni Alamos had also taken to Facebook to alert others about her experience, saying she “honestly can’t believe” the error and warned others to be careful.
A spokesperson for the retail giant said they were 'mortified' by the error and pulled the diary from their shelves immediately.
While it appears that the Dream Winter Castle is no longer available on Kmart's website, other women who had purchased the toy set in the Facebook group had revealed they'd questioned the design of the horse too.