The purpose of this study was to investigate how cooperative following story making activities affect young children`s peer interaction. The subjects of this study were 32 children aged five in Changwon City Kyeongnam Province. They were divided into two groups 16 each, experimental group(8 boys and 8 girls) and control group (8 boys and 8 girls). The experimental group did cooperative following story making activities. The control group read the same picture book. The experiment was held from October, 18th to November 26th 2010 twice a week for six weeks. The young children`s peer interaction was assessed by using observational method based on Kwak(1996) and Holloway and Reichhart-Erickson(1988). The results of this study were as follows: First, there was significant difference of young children`s positive peer interaction by cooperative following story making activities between the experimental and control groups. Second, there wasn t significant difference of young children`s dependent peer interaction by cooperative following story making activities between the experimental and control groups. Third, there wasn t significant difference of young children`s negative peer interaction by cooperative following story making activities between the experimental and control groups.