Hair loss around the eyes is a classic symptom of mites. Demodex usually cause this hairloss pattern, but it may also be sarcoptes. Your vet will do a skin scraping, although mites, especially sarcoptes, can be very difficult to find. Because of this, many vets diagnose based on symptoms. There is disagreement in the veterinary medical community on treatment of demodex. Some treat with ivermectin, some believe in waiting to see if it resolves on it's own. Your vet will be able to recommend the best plan after s/he looks at your puppy. The itching is enough to drive both the dog and you crazy, I know, but there's not too much you can do about that, since steroids are contraindicated in parasite infections, and nothing else really works. They may give you something like a Benzoil peroxide shampoo to use, but you're pretty much just going to have to live through it for awhile. One thing to keep in mind, though, is that with all that itching, your puppy may lose weight, since they burn up more calories with all the scratching and generally just being uncomfortable. Make sure your puppy is eating a really high quality diet (especially since demodex problems can be a sign of immune system disorders), and talk to your vet about the signs of hypoglycemia (low blood sugar) which is sometimes a problem even in healthy toy breeds, due to their higher metabolism. Good luck!
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