This article examines how an educator develops a drama pedagogy through the course of her dramatic interactions with three toddlers. A cultural-historical approach was used to explore the concepts of dramatic interactions and dimensions of drama pedagogy. Visual research methodology involved video observations and a reflective interview with the educator. A case example uses an everyday moment that took place in an Australian childcare centre. This is discussed to show how drama pedagogy unfolds to support toddlers' learning and development. The case example occurs in a special space known as the neighbourhood space. A drama pedagogy has been conceptualised through three dimensions: a space that has dramatic qualities, interactions and narratives. These foster an inquiry stance in toddlers. It is argued that drama pedagogy is an intentional pedagogical approach to engage toddlers in the neighbourhood space. This article gives focus to an educator who embraces a dramatic conversation style we call dialogue commentary.