This study is aimed at understanding how best children between the ages three and five comprehend stories. Specifically, this study measures the effectiveness between two seperate ways of story comprehension one by simply reading the stories to the children and the other by having the students act out the story as in plays. 46 three-years-olds, 51 four-years-olds, and 63 five-years-olds served as the subjects of this study over two weeks. Three stories that the subjects had not heard or read were chosen for this study. The students were divided into two groups. (1)those who were simply read to and (2)those who acted out those stories. The second group was further divided by sex. After conducting the story telling workshop a total of eighteen questions, which were developed earlier, were asked to the students. The results were calculated for the compression scores. Anova was conducted analyze how the members of the three said groups understood the story. The result of the analysis: 1. On the simple memory performance, dramatic enactment was more effective than story-reading for age 3. but there was no significant differnce between age 4 and age 5. 2. On the story comprehension, dramatic enactment was more effective than story-reading for age 3 but there was no significant difference for age 4 and age 5. 3. On the overall compression test, drama group showed higher score than story-reading group for age 3. For age 4 and age 5, there was no significant difference. 4. On the comparison of children`s age, there was some difference between story-reading and enactment of the stories for Age 3. but there was no difference for age 4 and age 5. S. There was no significant difference for boys and girls of all ages on the test. 6. There was an interaction between by story and by sex for age 3, age 4, and the comprehension of age 5. and also There was an interaction for simple-memory and overall compression of age 5.