Choose a gospel story to tell the preschool children, and ask them to imagine any of the characters, or scenery that comes to their minds. Once they share their ideas with the class, ask them to think about how they would draw or paint it. Ask the children to start illustrating some part of the story that they like best. For example, tell the children the story of the angel Gabriel coming to Mary and telling her she was going to be the mother of Jesus. Suggest they draw what Mary may have looked like; or draw what an angel might look like.
Teach the children about Jesus being a light to every one of them. Ask the children what a "light" is. Have them answer questions like: What does a light do? Why is light good? Why do we need light? How does light protect us? Then share with them that Christians believe Jesus is light. Ask them: How can Jesus be light? What is it about light that is like Jesus? Have the children create "candles" out of colorful construction paper. Let the children pick their favorite color for the base of the candle, and then add yellow paper flames on the top. Take an illustration of Jesus and tape or glue Him to the front of the candle. Underneath the candle, write the child's name.
Take a story from the Gospel, and ask the children how they could re-enact it in the classroom. Choose a child to play each part, and the rest of the class can make costumes, and props to help tell the story. Christmas is a popular time to make theatrical re-enactments. Choose an entire cast: Mary, Joseph, the shepherds, a manger with animals, angels, and three kings. To represent the Baby Jesus, take a baby doll and wrap it in a blanket.
Teach the preschoolers how to make various Christmas decorations. For example, cut out large paper stars and punch a hole on the top. Get multicolored yarn, and have the children pick their favorite color. Have the children decorate their star in any way they choose - including drawings, glitter, and paints.
Remind the children and their parents that we are all children of God by using each child's image on a Christmas ornament. Take a digital photo closeup of each child and print them. Have the children glue their faces on star or angel cutouts and attach yarn or string hangers.