We investigated the impact of story-based activities on literacy skills in pre-school children. The efficacy of story-based activities program were tested by literacy skills survey test. Results showed that, the scores of overall literacy skills and all subsets skills in the study group (n = 45) were statistically significantly higher than the control group (n = 41) (57.88 vs 27.72 p<0.000). We concluded that "Story-Based Activities" implemented for total 30 hours within 6 weeks, significantly enhanced reading/writing, alphabet knowledge, phonological awareness, vocabulary and pronunciation in preschool children. We recommend the integration of the story-based activity to the standard educational program to boost the literacy skills in preschool children.