This paper examines the reasons for including drama in elementary curricula; the relationship of drama to children's developmental needs; and appropriate strategies for teaching drama to young children. Reasons for teaching drama include drama's stimulation of high-level thinking and collaborative work. Drama and improvisation also require high levels of verbal and nonverbal skills; teach children to listen carefully and use nonverbal communication; encourage concentration; and help children learn to separate fantasy from reality. Three developmental levels of dramatic performance for children from age 5 through 12 are hypothesized. These levels involve: (1) personal and exploratory pretend play, in which children observe and remember; (2) expressive drama, in which children express themselves within the classroom society; and (3) communication, in which children develop performance skills, make artistic choices, and engage an audience. Practices that help children develop dramatic skills include choosing content matter significant to the children; guiding children in their acquisition of group skills; helping children try out characters and make playwriting or storytelling decisions; encouraging children to work in pairs; and engaging children in story dramatization. Five bibliographic items are cited. (BC)