Usually the children will want to take turns being certain characters. Best with younger school age children. Role playing The children take the part of the characters and face various situations in which they must respond. As the story progresses, use a series of pictures to illustrate the story. Bible coloring books are good resources.
Timing is important.
Take care the pictures aren't shown too soon, hold interest, and do not distract attention from key points. The key to these is the element of suspense and surprise. Talking and drawing at the same time is more strenuous that it appears. Know and practice your story well. Flannel-graph stories hold attention fairly well if carefully prepared and executed.