A hydrophobic granular play material comprised of a multitude of engineered particle structures. The particle structures have an average maximum diameter of less than three millimeters. Each particle structure has an inner core of first material that is coated with a hydrophobic composition. The inner core can be particles of natural sand, plastic, or polyfoam. The inner core is enveloped in a composition of a cured elastomeric gel. The gel is hydrophobic. However, the elastomeric gel does exhibit adhesion to itself. Consequently, the particles coated in the elastomeric gel repel water but lightly adhere to each other when compressed together. The particle structures of the play material can therefore be compressed into shapes in the same manner as natural wet sand.