This study aims to examine experience of children and teacher, who participate in the story generation activity. For achieving this purpose, the story generation activity was applied to the mixed age class consisting of children aged 3, 4 and 5 for 7 weeks, and participant observation was conducted. According to the study result, children generated creative stories, which were based on existing experience, or reorganized, and expressed their instinctive hidden sides in the stories. Also, media, which highly influence children, intervened in the stories a lot. In the activity to decide on the titles of the stories, children generated various types of titles focusing on the backgrounds of the stories, central events and emotional expressions. Teacher assisted children s story generation by absorbing all the surrounding stories, which happened during the story generation activity, and mediated in diverse opinions of children through discussion and consultation. After story association, there was a modification process, but the whole story was modified at the initial stage, so it was changed into the activity to assess the stories and come up with new stories. Based on these study findings, this study implies that children and teacher in the story generation activity need to go together by transcending opinions and views of each other and being brought down to children s level, and teacher should provide a democratic atmosphere and promote children s desire for story generation and development through a constant activity.