Help children imagine new characters and scenes by providing plenty of props. Stock your playspace with used but clean costumes and grown-up clothes. Ask friends and family to donate purses and bags to you instead of throwing them in the trash. Find plastic hats (that you can easily wash) at the local thrift store, or better yet, make them yourself out of recycled products (i.e. newspapers and paper plates).
Simple painted plywood with a window carved out becomes a stage for puppets and marionettes. Children can make puppets out of socks, gloves, felt, paper bags, and more. You can easily build fun camp activities around areas like this in your playspace. For instance, have children create all the characters from their favorite storybook and then perform it for their friends.
About.com: Family Crafts. Puppet Craft Projects. http://familycrafts.about.com/od/puppets/
alltheDAZE.com. Prop Boxes. http://www.allthedaze.com/drama5.html
Childcraft Education. Dramatic Play –Featured Products. https://www.childcrafteducation.com/SubCat.asp?LinkKeyWord=dramaticplay&SKW=CAT_D
Discount School Supply. Dramatic Play. http://www.discountschoolsupply.com/Category/Category.aspx?category=178
Ellis, Susan Clare. Build a Puppet Playhouse. FamilyFun.com. http://familyfun.go.com/decorating-ideas/building/feature/famf0502_proj_puptheat/
FamilyFun.com. Costume Corner. http://familyfun.go.com/arts-and-crafts/sew/specialfeature/craftgroups-kid-costumes/
FamilyFun.com. Portable Playhouse. http://familyfun.go.com/decorating-ideas/building/feature/famf0902_proj_portplay/
FamilyFun.com. Puppet Pals. http://familyfun.go.com/arts-and-crafts/sew/specialfeature/craftgroups_puppets_sf/
Mr. McGroovy's Box Rivets. Build Magical Memories (how to build cardboard box castles, fire engines, and more). http://www.mrmcgroovys.com/ideas.htm
(Photo courtesy of eibe)