This paper examines the effects of the playworld educational practice on the development of narrative competence in 5- to 7-year-old children. The playworld educational practice is derived from play pedagogy and the theory of narrative learning, both developed and implemented in Scandinavia. The playworld practice consists of joint adult–child pretense based in a work of children’s literature, discussion, free play, and visual art production. When compared to children under a control intervention (conventional school practices without pretend play), children who participated in the playworld practice show significant improvements in narrative length, coherence, and comprehension, although not in linguistic complexity. These findings provide further evidence concerning the role of pretense in the narrative development of young children.