There are many different types of interactive picture books which differ in the level of interactivity and ways of application. This study covers both theoretical and practical aspects. The first chapter examines theoretical aspects as well as the historical development of picture books in Croatia and worldwide. The second chapter discusses the interactivity of picture books which is reached when a child uses different interactive components during the reading and willingly determines the way and order of the reading. In the second chapter, there are also different types of interactive picture books cited. The third chapter tries to explain why we consider a picture book an interactive media and its importance for cognitive and intellectual development of children. The fourth chapter emphasizes the importance of appropriate interaction between a child and his educator or a parent which can be achieved by dialogue reading in which the different phases of reading are being interchanged with periods of conversation about the story and pictures. Furthermore, the importance of stimulating environment and pleasant atmosphere during the reading is also being discussed. In the fifth chapter we explain the difference between high and poor-quality picture books and how to recognize them. The sixth chapter discusses the digital picture book which, due to technological improvement, is regularly on the list of the most wanted interactive picture books. In the second part of the study, we describe the methodical procedure of making the interactive picture book. Firstly, we discuss an example from 2015 when the children took part in making of moving picture books. Then we describe the methods and procedures which were being used for the making of the digital interactive picture book. Based on the mentioned examples it can be concluded that the children can be the creators of the story, illustrations and sound records which resulted in the digital picture book.