Mighty Max was a toy line released by Mattel (I think they were based on a UK toy line) that was based after a cartoon series of the same name.
Max, the protagonist, receives a cap and is transported to another world when he puts it on. His guides are Virgil, a talking chicken, and Norman, a hulking warrior/bouncer.
The toys featured miniature scary-looking monster heads that would open up into minature playsets with mini figures of Max and friends and various enemies.
Do You Remember Mighty Max?
Do You Remember Mighty Max?