In light of factors that hinder teachers in the use of drama and theatre in classroom application, this Digest explains the "myths" of drama and theatre and focuses on their effect on children's literacy development. In addition, rather than presenting a "tour de force" of resources, this Digest highlights some readily applicable strategies for classroom application. It discusses the confusing terminology; the necessity of dramatic activities; facilitating effective dramatic activities (dramatics story re-enactments, drama activities that promote vocabulary development, and incorporating process drama into writing instruction); and the myth of "playful" dramatic activities. (Contains 12 references.) (RS)