Purpose: Being "literate" is well established as key to active civic participation, right from the earliest years of life. Young children's natural curiosity and motivation to understand the world and their places within it through playful explorations offers rich opportunities for learning. Reported here are findings from a STEAM (science, technology, engineering, the arts and mathematics) project drawing on problem solving, inquiry and reflection through storytelling. Design/methodology/approach: Responding to a playful scenario, children 12 months-6 years examined and tested properties of different materials to make a waterproof prototype for a soft toy. Subsequent testing occurred along with a narrative story about themselves and their toys experiencing different rain events. Findings: Evident in the data was the children's capacity to take up domain-specific language, intentionality in creating their own artifacts and stories, and the development and control of narratives within the play. Originality/value: Argued here is that the arts, particularly making and storytelling, are powerful platforms from which to support young children's complex knowledge and literacy development for active participation in the world.