poses of this study were to see the development and characteristics of children`s story concept. The questions of this study were as follows: 1. How will the story concept development be appeared by age and what are the percentile of each stage by age. 2. How will the story concept development be characterized by stages? To test these questions, 59 middle class preschoolers of age 3 to 6 were selected from a kindergarten. The instruments for children`s siory telling were felt board and felt materials consist of 22 piceses with people, animals, vehicles, houses and trees. These materials were selected after a pilot study. The children in this study were interviewed individually and asked to make up a story with the felt materials. The children`s make-up stories were audiorecorded and transcribed afterwards. The data were analyzed with the statistical method, using percentile and it was also analyzed qualitatively. The results of this study showed that children`s story concept development were increased by age. The story schema, constructed by children were more complex as the children`s story concept got higher. The characteristics of the story concept development are as follows: Stage 0-Children had no concept of making-up story at this level. Stage 1-Children were becoming aware of making-un story at this level. The actions of characters were arrayed simply, so actions repeated to form patterns. Stage 2-Actions by individual characters were shortly sequentialized. But sequentialization of actions among different characters did not take place. Stage 3-Interaction and sequentialization of actions among characters took place partially in the story world. No main character appeared. However character began to be introduced in setting. Children told the story dialogically. There were overuse of conjuctives. Stage 4-There was a protagonist in the stories. Interaction among characters took place during the whole story. The story was sequentialized. Setting appeared but internal response didn`t appear. So story schema included the following categories ; setting-unplanned action-attempt-consequence. There was a overuse of conjuctives. Stage 5-Stories have protagonists who have troubles or goals, then they become aware of troubles and suggest a problem, finally actions were taken to overcome the problem. A complex story schema with the following appeared: setting-initiating event-internal response-attempt-embedded episode-initiating event-internal response-attempt-consequence-reaction. Complex story schema with episodes and embedded episodes appeared. The results of this study suggest that we, as educatiors in early childhood education, should understand the developmental stage of story concept and read stories to enhance children`s level of story concept.