After reading an Indian legend to the class or having older students read one to themselves, assign the students a project that directly relates to the legend. For example, read about the Indian paintbrush in Tomie dePaola's story entitled "The Legend of the Blue Bonnet." Afterward, ask the students to create their own Indian paintbrush flowers using large, fat brushes, watercolors, paper and easels. The story takes place in Texas, so you could also use this tale as an introduction to legends and stories of the Lonestar State.
Give students a copy of one of the Indian legends, and divide them into groups and ask them to turn the words into script form. They could also create or find costumes and props to go along with their script. Have the students perform their plays for other classes in the school or invite parents to see the production. You could also ask students to adapt the script to modern times, and act out the play in that manner.
Read a few of legends out loud to the students. Brainstorm a list of key elements that the legends share in common and write them on the board. Now, ask the students to come up with their own legends about some sort of natural occurrence in the area. For example, they could write about the origins of one of the local animals or how a famous park in town came to be. They must include the elements written on the blackboard.
Use Indian legends to teach children about the reasons why people use legends at all. Read them a number of Indian legends, and then let the students do an Internet search to find legends in their own town or an area of particular interest to them. Once they have completed the search, have them compile a list of reasons why these various people might have made legends. Put a list on the blackboard and try to narrow it down for the students.