To test Bettelheim's claim that picturebook illustrations adversely affect children's imagination, this study examined effects of an adult's storytelling versus picturebook reading on the creativity of 11 preschool children. Initially, a total of 292 interviews were held with 30 children; the reduced final sample was composed of children with high levels of attendance at treatment sessions. In the treatment phase of the study, each child was read a story from a picturebook or was told the story; afterwards, the child was asked to tell a story of his or her own. When the child did not tell a story, it was suggested that he or she might wish to color and that a story might occur while coloring. All stories told by subjects were tape-recorded and transcribed. A total of 141 stories and 293 drawings were analyzed. Additionally, subjects' parents completed a questionnaire concerning their children's sensory perception and stimulation in their home environments. Generally, findings indicated that (1) treatment with illustrated storybooks increased children's quantity of drawings and the figural quality of those drawings and (2) storytelling resulted in more stories told, an increased flexibility in language, and greater coherence of thought. An appendix discusses one child's reticence to tell stories when "competing" with book form. (Author/RH)