Mel Margulies, 55, a toy designer and a former owner of the David Alexander Art Gallery in Georgetown, died Sept. 4 at Long Beach Hospital in Long Beach, N.Y., of a cerebral hemmorhage.

Mr. Margulies, who had lived in Annandale since 1967, was born in New York City. He served in the Army during World War II and earned a bachelor's degree in fine arts from New York University. He was an artist and designer for the Ideal Toy Co. in New York before moving to the Washington area in 1967.

He was director of research and development for Funtastic, Inc., of Alexandria, a toy company, until about 1973, when he took over the David Alexander gallery.

In 1974, in conjunction with the Washington Hebrew Congregation, Mr. Margulies helped put on an exhibition at the synagogue of the works of Mortiz Oppenheim, a 19th century German Jewish artist whose pictures had not previously been shown in the United States.

About 1975, Mr. Margulies sold the gallery. At the time of his death, he was a member of the research and development staff of the Ideal Toy Co.

Survivors include his wife, Cynthia, of the home in Annandale, and two sons, Alexander, a student at the University of Virginia, and David, a student at Yeshiva University in New York.

The family suggests that expressions of sympathy be in the form of contributions to the Scholarship Fund, Yeshiva University, 500 West 185th St., New York, N.Y., 10033.