A child's life is fairly structured and regulated for the most part. There isn't much decision-making, because adults and caregivers tell them when to sleep, when to eat and where to go. A child's imagination is the one aspect of their lives over which they have completely control. Dramatic play allows a child to draw upon their imagination in a free-spirited and unrestricted way.
A study conducted by the American Academy of Pediatrics states "free and unstructured play is healthy and--in fact--essential for helping children reach important social, emotional and cognitive developmental milestones, as well as helping them manage stress and become resilient."
Developing social skills is an early, fundamental process for children that teaches them how to behave and interact with people in a socially acceptable way for their age. Whether it's pretending to be pirates or playing school, decisions are made as to what role each child will assume. It requires a bit of negotiation--who will play the pirate and who will be the crew--and sharing. They may decide to take turns playing the teacher, and that requires patience to wait their turn and cooperation.
Dramatic play also helps children learn how to cope with fears and worries that may arise in certain situations, such as going to a new school or visiting the dentist for the first time.
You might not think of dramatic play being a physical activity, such as running or jumping, but forms of dramatic play can be very physical and great for developing coordination and motor skills. Setting a table for a tea party, climbing the castle ladder or walking the pretend plank on the pirate ship requires concentration, coordination and balance.
A child's language development can benefit from dramatic play. By pretending to be a fireman or policeman or acting out the role of a teacher or parent, he gains important language skills through this type of storytelling. Children who play with their peers in this way will also pick up language skills from one another. Having a conversation with an adult or a peer will allow a child to learn new phrases and practice simple sentence structure. Dramatic play encourages children to use expressive language, acting happy or sad, angry or funny. It is even helpful for those children who might be have difficulty showing emotion or act shy around others.
Cognitive development focuses on how children learn and process information. It is the development of the thinking and organizing systems of the mind. It involves language, mental imagery, thinking, reasoning, problem solving and memory development. When children engage in dramatic play, their minds are called upon to do a number of these actions.
Having to think about how a pig acts, for instance, or what a princess might say are examples of mental imagery. Relying on memory to act out a scene from a favorite bedtime story is another example of how dramatic play can strengthen a child's cognitive development.