This year's show was held at Excel from 28 to 31 January and attracted more than 200 exhibitors.
"A huge amount of socialising and networking takes place at the show and the move back to West London provides the right environment for this with a huge variety of places to meet, entertain and stay inside and outside of show hours," said BTHA director of communications, Natahsa Crookes.
"We believe that a move to West London will sustain the Toy Fair over the coming years and this will be a popular move with both our visitors and our exhibitors," added BTHA chairman, Roger Dyson.
Olympia first hosted the Toy Fair in 1955, before it moved over to Earls Court in the 70s.
Jeremy Rees, exhibition sales director of EC&O Venues commented: "We are delighted to welcome back the Toy Fair to Olympia's Grand Hall... we‘re positive the show will do even better as it returns to West London and we're really looking forward to working with BTHA in the future."
The dedicated toy, game and hobby exhibition will take place from 26 to 28 January.