I found these cute puppets for the kids to do at dltk-kids.com. We did a paper bag tiger .
Here are puppets we did with Popsicle sticks.
Next, I had the idea to do a theater.I took a big cardboard box.Then I cut the desired pattern. At first I wanted it to look like curtains but then I took a real curtain and stapled it on. Really that is it! Soooo easy.