der Kreisel
top
A children's toy designed so that, after being spun, it rotates quickly around its own axis.
Das Kind ließ den bunten Kreisel auf dem Boden tanzen.
The child made the colorful top dance on the floor.

top / roundabout
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top
A children's toy designed so that, after being spun, it rotates quickly around its own axis.
Das Kind ließ den bunten Kreisel auf dem Boden tanzen.
The child made the colorful top dance on the floor.

The word 'Kreisel' (top / roundabout) comes from the noun 'Kreis' (circle) and the verb 'kreiseln' (to spin in circles). This idea of rotation connects both meanings: the spinning toy and the circular traffic layout.
Der Tänzer drehte sich schnell wie ein Kreisel.
The dancer spun quickly like a top.
Whether the toy or the roundabout is meant is easy to tell from context. Words like 'spielen' (to play), 'Kind' (child), or 'Boden' (floor) point to the toy, while 'Auto' (car), 'Ausfahrt' (exit), or 'Verkehr' (traffic) refer to the roundabout.
Mein Sohn hat zu Weihnachten einen neuen Kreisel bekommen.
My son got a new top for Christmas.
In the meaning 'Kreisverkehr' (roundabout), 'Kreisel' (roundabout) is a colloquial term and is especially common in southern Germany, Austria, and Switzerland. The official term that is understood everywhere is 'der Kreisverkehr' (roundabout).
In der Schweiz gibt es sehr viele Kreisel.
There are a lot of roundabouts in Switzerland.
In connection with traffic, typical phrases such as 'in den Kreisel fahren' (to drive into the roundabout), 'im Kreisel die Ausfahrt nehmen' (to take the exit in the roundabout), or 'den Kreisel verlassen' (to leave the roundabout) are used.
Du musst in den Kreisel fahren und dann die erste Ausfahrt rechts nehmen.
You have to drive into the roundabout and then take the first exit on the right.
roundabout
'der Kreisverkehr' and 'der Kreisel' can both mean a circular traffic layout at an intersection. 'Kreisverkehr' is the normal and precise word, especially in official or neutral situations. 'Kreisel' is used more colloquially or regionally for this. Learners may confuse the words because 'Kreisel' also means a toy top that spins. In traffic, 'Kreisverkehr' is always safe and unambiguous.

Hinter dem Kreisel liegt rechts die Tankstelle.
After the roundabout, the gas station is on the right.
Am Kreisverkehr musst du die zweite Ausfahrt nehmen.
At the roundabout, you need to take the second exit.