The purpose of this action research project was to determine the effect of felt piece manipulative integration on preschoolers’ abilities to retell stories. A preschool class was taught retelling skills and story grammar elements. The class was exposed to a fairy tale five times and then each student was assessed on retelling abilities and the number of story grammar elements recalled without the integration of manipulatives. The class was then exposed five times to another fairy tale by the same author and was assessed on the same skills while having access to felt piece manipulatives that represented the story grammar elements taught, including characters, setting, and the feelings of the characters. Comparisons were made between the number of elements recalled and reported when children were assessed without felt piece manipulatives verses the number recalled and reported with felt piece manipulative integration. Analysis of the data collected suggests that integration of felt piece manipulatives has a positive effect on increasing the number of story grammar elements reported during assessments by preschool students.