That's the famous "Blue Snaggletooth" from the Sears Cantina Playset of 1978 or '79.
Yup. I remember my mom ordering it from a Sears catalog in '79. Didn't ask for it, but it was just something she did for me.
The previous Christmas, she got me the Death Star playset including the trash compactor with the "hidden" green eyeball monster figure (still got that around somewhere).