The purpose of this research was to develop children's initiated musical drama activity through creative story songs based on children's literature, and to examine the effect of this activity on children's tonal audiation and rhythmic audiation. Participants of this study consisted of 54 children of four years of age. They were divided into three groups, of which two were educational groups and one was a comparative group. The first educational group participated in creative story songs, the second educational group participated in children's initiated musical drama activities mentioned in the beginning over a period of 12 weeks. The collected data was coded, computerized using the SPSS PC program and used by analysis of covariance(ANCOVA). The results indicated significant improvement of the second educational group's tonal audiation compared to that of the other groups. The same effect of the children's initiated musical drama activity on children's rhythmic audiation on the other hand could not be observed. In conclusion, the case of the second educational group demonstrates that children's