Pragmatics, or functional communication, refers to the transactions that occur between people, or the actual performance of language in social contexts. This paper discusses several functional communication theories, applies these theories to the education of children, and offers a number of practical techniques for teaching creative dramatics. Because the classroom provides the logical testing place for children to experience dynamic verbal and nonverbal expression, the paper suggests and describes the following activities for exploring and implementing creative drama in teaching: story dramatization, narrative pantomime, improvisation, categorization of situations, frozen pictures, add-ons in role playing, and conversations. Each of these activities encourage children to explore a situation, evaluate the appropriateness of behavior, and recognize the consequences of their chosen behavior. (MAI)