In puppetry like in art we deferentiate different types of puppets, like: hand puppet, yawning puppet, shadow puppet, rod puppet and marionette. All of those puppets in the hands of children act magical and they recive properties that the children give themselves, because puppets are extremly important in childrens development. Children are mostly playing with puppets spontaneously. Puppets also contribute to childrens speaking and social skills. In this assigment I guided the children in making stage puppets in kindergarten „Proljeće“. I offered to the children different unformed materials, and the whole puppet creation I left to the children and in that way I tried to spark the childrens art activity. Observing them create their stage puppet from unformed materials, we can notice that the puppet is a very big sorce of creativity for children. Puppet as an unliving item which children bring to life with their imagination, allows children to be themselves. Puppet allows the children to express their thoughts and emotions. Preschool teacher is obligated to help the child with the help of puppets to develop a positive picture of themselves, that the child realises himself and accept their differences from other children. Creation of stage puppets is also based on the development of social skills, for that reason puppetry is a group acitvity that requiers the children to respects others, listen, wait in line, respect other feelings. With the help of puppets children are more easily engaged in communication with children their age. Those children who are more withdrawn, through manipulation of the puppet they become more open and have more confidence when they need to engage in communication with a group of other children. It is very important that in educational institutions we attach as much importance as possible to puppetry in order to strengthen children's self-confidence and create a positive image of themselves, because the doll leaves a huge impact on the child and becomes the child's friend with whom he analyzes the world around him and within himself.