Glue white butcher paper to the inside of a large box, covering all five sides completely. Trim any excess.
Draw the scenery elements of the diorama on the paper attached to the back wall of the box. Include mountains in the distance and a grass-filled valley in the foreground. Add a few low trees and a stream flowing from somewhere in the mountains. Include a small village with rawhide tents decorated with Native American symbols and an area of planted crops on one of the side walls. Draw elk, deer or other game animals in the distance on the other wall with hunters depicted..
Paint the scenery on the butcher paper, including grass and the stream on the floor of the box. Add a blue sky with a few clouds and the sun in the sky to the inside ceiling of the box.
Glue small Native American dolls to the area in front of the village. Alternatively, construct your Native Americans using modeling clay and doll costumes. Use small pebbles and twigs to create a fire pit for cooking. Use small pieces of red, yellow and orange cellophane for fire and make food out of clay cooking over the fire.
Construct teepees using three or four long twigs tied together at the top with string and a circular piece of leather covering the framework. Leave the flaps of the teepee open so you can see inside. Paint symbols on each teepee and glue the teepees in place close to the fire pit. Place small pieces of faux fur inside the teepees to represent beds covered by animal skins.
Make small hunting bows out of sturdy twigs and string. Include small leather tubes with arrows made from toothpicks. Add lances made from small, straight twigs or thin dowels. Place the weapons inside the flaps of the teepees.
Glue miniature plastic trees to the floor of the box and stretch a string between some of the trees to create a pen for Indian ponies. Glue the ponies inside the pen.