The objective of iTheater is to develop an interactive integrated system for story-creation and storytelling based on tangible interfaces and animation editing dedicated to children in pre-scholar age. iTheatre uses a puppet theatre-like space for enabling storytelling as a game. The interaction of iTheather is performed in the physical world by manipulating real puppets and other physical objects typical of puppet theaters and mapped to a virtual representation that allows further analysis and post-production of the interactions. Since the puppet theatre is also a social game that often involves more than one puppeteer and an audience, the collaborative involvement occurs in a more spontaneous way. From the research point of view, the focus is the design, development and evaluation of multimodal interaction technologies for creation of educational tools, and investigation of the use of tangible interfaces with children in an educational environment.