Games like Teddy Horses
Games like Teddy Horses include Palia, Hello Kitty Island Adventure, Stardew Valley, Luma Island, and Disney Dreamlight Valley. We matched them by the tags players give Teddy Horses on Steam (Horses, Cute, Cozy, Life Sim, and Relaxing): closest matches first, and among equally close ones the better-known games.

Palia
Shared: Cozy · Life Sim · Farming Sim

Hello Kitty Island Adventure
Shared: Cozy · Cute · Life Sim

Stardew Valley
Shared: Life Sim · Farming Sim · Relaxing

Luma Island
Shared: Cozy · Farming Sim · Relaxing

Disney Dreamlight Valley
Shared: Life Sim · Relaxing · Exploration

Tales of the Shire: A The Lord of The Rings™ Game
Shared: Cozy · Life Sim · Farming Sim

Spirit City: Lofi Sessions
Shared: Cozy · Relaxing · Creature Collector

Slime Rancher 2
Shared: Cute · Relaxing · Creature Collector

Teddy's Haven
Shared: Cozy · Relaxing · Life Sim

Minami Lane
Shared: Cute · Life Sim · Relaxing

Summer in Mara
Shared: Life Sim · Cozy · Relaxing

Paralives
Shared: Life Sim · Character Customization · Relaxing

Little Witch in the Woods
Shared: Cute · Life Sim · Relaxing

Heartopia
Shared: Life Sim · Cute · Relaxing

Tiny Bookshop
Shared: Cozy · Life Sim · Relaxing

TOEM: A Photo Adventure
Shared: Cozy · Cute · Relaxing

Infinity Nikki
Shared: Cute · Relaxing · Life Sim

Paleo Pines
Shared: Relaxing · Farming Sim · Cute

A Short Hike
Shared: Cute · Relaxing · Exploration

Coral Island
Shared: Life Sim · Farming Sim · Relaxing

The Ranch of Rivershine
Shared: Horses · Life Sim · Cute

Loddlenaut
Shared: Cute · Relaxing · Cozy

My Time at Portia
Shared: Life Sim · Farming Sim · Simulation

Slime Rancher
Shared: Cute · Exploration · Adventure