Pre-school education institutions use games and play to foster development, education and learning in children as well as the development of core competences for the future. Children, kindergarten educators and parents, as well as other factors contribute to improvement of the kindergarten as an institution. Studies show that children’s behaviour has been studied most thoroughly precisely through play. Playing with puppets allows the child to go beyond the egocentric and move to the point of view of other people. Stage puppets are important in all the aspects of development. Interacting with the puppet allows the child to develop imagination, creativity and emotional recognition and expression, it aids speech and self-image development. Puppets foster interaction in the social group, support teamwork, cooperation, and conflict resolution. The study had been conducted in a kindergarten with children 3, or 4 years of age. Methods used are observation and analysis, while the goal of the study is to determine the effect of the stage puppet on a child´s development in its entirety, especially pertaining to the child´s inner world and social and emotional development inside the kindergarten institution. After the study had been conducted the stage puppet has been listed as an important tool for encouraging development. Using the puppet in pre-school institutions allows us to access each child, their interests, needs, hidden potential as well as various problems, suppressed emotions, and behavioural patterns.