It may seem like you'll ever be able to nurse your new baby with your toddler around, but you can achieve this goal. As unrealistic as it may sound now, finding quiet-time activities for the toddler is a great place to start. Before your baby is born, purchase a new stash of coloring books, fresh crayons, stickers, puzzles. Anything that seems fresh and new will be much more exciting to your toddler and will most likely hold their attention better than something they've seen a thousand times. Many moms choose to set up nursing stations in an area like a playroom where the older sibling has all his toys.
Also, if you're not opposed to television, you may find that a show like Sesame Street is the one thing that you can really count on to distract your older child so you can nurse your baby. If you have a newborn and a toddler and really need some time to relax, it is fine to turn on a little PBS Kids!
The most important factor to remember is that the older child still has needs. Depending on the age of the sibling, you may find that he is regressing in behavior or habits -- he was potty trained and is now having tons of accidents; she's throwing more tantrums than usual; he wants to try the breast milk...(This is the part in a movie where you hear a record scratch followed by silence...) He wants to try the breast milk? Believe it or not, this is a common response to a nursing newborn sibling. You can handle this in a few different ways, whichever is most comfortable to you. If the child wasn't weaned that long ago, the regression may involve nursing (albeit temporarily) again. If it's really just the milk that he wants to try, you can express some milk and put it on a spoon for him to try. (A lot of children who haven't had breast milk in a while and taste test it don't come back for seconds.)
Sometimes the older child simply wants attention during the breastfeeding session, and that's fine. Once you get the hang of positioning and latching the baby comfortably, you can have your older child snuggle with you and you can read a book or do some other quiet-time activity with her. Don't make her feel that she shouldn't be around when you're feeding your baby. If she feels like she's part of the process, it will be easier on the whole family.
Finally, if you are bottle feeding expressed milk to the baby, perhaps you can allow your older child to help. Prop the baby comfortably on his lap (while you're still subtly holding on) and allow him to hold the bottle with you. "Big Brother mode" will kick in quickly and, aside from loving the fact that he's feeding "his" baby, his maturity will rise and make your home and family life sweet.
