Interactive drama, a simplified form of drama, is a vehicle through which children can become involved with literature. When preservice teachers are presented with interactive drama in a college setting, it serves as an introduction to the simple, effective learning experiences available through informal drama activities. In an interactive drama, children participate in the retelling of a story by playing the parts and reading the dialogue of their characters, producing the sound effects, and spontaneously interpreting their roles while guided by the sequence, setting, and characterization of the story. A summary of studies on the effects of creative dramatics and dramatic play reveals their critical impact on early cognitive and social development. Of all the arts, drama involves the participant most fully--intellectually, emotionally, physically, verbally, and socially. Various studies show that children's comprehension increases and they are highly motivated to read if they are involved in analyzing and actively responding to the characters, plot, and setting. Dramatic interaction produces the valuable effects of drama without taking class time for multiple rehearsals and memorizing lines. The simplest type of interactive drama, an adaptation of role playing, can be used even with young children. (Contains 17 references.) (CR)