After reading the book to the class of second-grade students, separate them into small groups of three or four and give each group a few note cards with lines from the story on them. The children will have one minute to arrange the note cards into the correct sequential order. Extend the activity by asking students to designate each note card as a specific story part such as the introduction, climactic point and the moral of the story.
Second-grade students can make an article of clothing from a paper bag just like Elizabeth used in the story. Give each child a large, brown paper grocery bag and instruct each to cut a line up the middle of the bag, a cul-de-sac on the bag's bottom big enough for his neck and two holes in the sides of the bag for his arms. Students can decorate the bag with drawn characters from the story such as Prince Ronald, Elizabeth and the dragon.
Have the children each choose one image from the pages of the story book to represent with a haiku. Haiku poetry is made up of three lines of verse that contain five, seven and five syllables, respectively. Each student writes a haiku based on their story image, decorates the paper around the poem and hangs it on a "Paper Bag Princess"-themed bulletin board for all to see. Organize each haiku in the story's sequential order on the display board to retell the story in poetic form for students in other classes.
Transform the story into a play script. Students in the class act out the story before others in second grade or for the entire school at a "Paper Bag Princess" assembly. After the princess play, students will discuss responsibility and an alternate ending if Elizabeth had not been brave or smart enough to trick the dragon into going to sleep in order to rescue Prince Ronald.