Multimedia-enhanced children's games and storybooks are available in plenty these days. Most of them, in the process of achieving a great deal of interactive entertainment and powerful imagery, fail to understand a child's way of thinking and their creative strength in story telling. In addition, children of today are being exposed to and attracted to violent arcade games and entertainment concepts that fall short of any good virtues. This project is the result of a study of South India's traditional puppetry, its story-telling methodology, and its subsequent application in developing a multimedia story-telling/creating application that is interactive, giving the child options to create his own characters and stories. Further, it also allows for forming an active team and enacting a play with the characters and stories they make. Thus, integrating a great source of learning from traditional visual forms and developing a highly participatory and hence dynamic play environment, 'Puppettooner'—the multimedia application provides 'edutainment' rather than just entertainment.