Defining creative drama as a teaching process that uses the inherent ability of each person to explore ideas, behavior patterns, and human relationships, this monograph is designed to help teachers create a working environment within which this process can be most productive. Various sections of the monograph provide information about how creative drama can best be used in the classroom; the three divisions of creative drama--predrama, fantasy drama, and human drama; the teacher's role in creating an environment in which students can work openly and harmoniously; activities for predrama, fantasy drama, and human drama; the objectives of creative drama; and lesson structure and sample lessons. Lists of selected basic resource texts, other sources of information about the subject, professional organizations, workshops and festivals, and available videotapes are also presented. (FL)