For an easy project, save old Christmas cards that feature the Holy Family. Let children choose a picture that they like and glue it to a piece of blue construction paper. Then glue on wooden craft sticks around the family to resemble a stable.
Give the children a piece of construction paper with a stable drawn on it. Have them decorate large wooden craft sticks to look like Mary and Joseph. They can draw faces on the top of the sticks and glue on yarn for hair and scraps of fabrics for clothes. Let them glue Mary and Joseph into the stable scene. Then have the children glue on a small amount of florist moss between Mary and Joseph to be the manger. Finally they can glue a peanut shell in the mossy manger to be baby Jesus.
Children can make their very own baby Jesus doll using a child's white sock. Have the children stuff the sock with cotton balls or batting. Then wrap a rubber band around the opening and fold over the edge to look like a baby's cap. The children can add a face using markers. Swaddle the sock baby in a piece of blue felt. Children can use the dolls to reenact the nativity story and role play the other parts of the Holy Family.
Make the Holy Family using two small terra-cotta pots and one saucer. Let the children paint the saucer and pots any color they wish. Turn the dry pots upside down and glue a wooden craft ball to the top of each one and draw on a face. These are Mary and Joseph. Fill the saucer with raffia to be the manger. Take a small wooden craft ball and draw a face on it to be baby Jesus. Swaddle the craft ball in a bit of cloth and lay the baby Jesus in the manger.