Draw a simple teddy bear template on brown construction paper or look online for one. Give each child a bear to decorate with pompoms, googly eyes, fabric and ribbon. Glue the craft items with liquid glue or glue sticks.
Make teddy bear headbands to use when acting out stories, such as "The Three Bears," or "The Teddy Bear's Picnic," by Jerry Garcia. Cut strips of brown construction paper 3 inches wide and 18 inches long. Trace 4-inch circles on brown construction paper and let the children cut the circles out. Staple two circles to a strip of construction paper and then staple the strips together to make a ring. Adjust the rings as necessary to fit the children's heads. Act out the story of "The Three Bears" or hold a teddy bear picnic.
Use cookie cutters to make teddy bears out of play dough or clay. Later, show the children how to roll balls out of clay and make three-dimensional teddy bears out of the balls. Consider salt dough, which can be painted, or make and decorate sugar cookie teddy bears.
Make teddy bear puppets from socks or brown bags. Make a teddy bear template and attach it to a paint stick. Allow the children to add googly eyes, clothes and other details. Use the puppets to act out stories or to make new stories. Read the traditional story of the three bears and then share some variations, such as "Dusty Locks and the Three Bears" by Susan Lowell, or "Somebody and the Three Blairs" by Marilyn Tolhurst. Read some books about real bears and compare the differences between real bears and story bears.