The purpose of this paper is to study play and imagination in relation to early childhood education by discussing Caroline Pratt's theory on play. In 1914, Pratt opened the Play School in Greenwich Village, New York, in order to develop creative imagination in re-creating and learning about environment. Pratt noted that the trips to the neighborhood would stimulate creative responses among children. The more closely children observe a tugboat, the more deeply they are stirred by it, and the more eagerly and vividly they strive to re-create it in play. Pratt clarified play and creative imagination as follows: (1) Play is the process by which the child's experience is expressed and organized. (2) Play is enriched as further experinence including primary and vicarious information becomes available. (3) Development of play requires adaptable materials that can serve creative imagination. (4) In play, creative imagination is to combine with planning, manipulation, and construction to produce an "educative experience". (5) Adult understanding of the child's maturity level and growth becomes the base line upon which materials and experience are provided. By studying the above-mentioned Pratt's theory on play, we would have a better understanding of developing creative imagination through play which children reproduce the real world in their own way.