Playing with dress up clothes and props enhances imagination, verbal skills, vocabulary, social skills, and more. Children are creating scenes in their minds and describing their ideas to their teacher and peers. This gives them the opportunity to practice verbal expression while their peers listen and practice comprehension.
This sets the foundation for literacy in elementary school and beyond. When a teacher is present, there are even more opportunities for learning because the teacher can guide the conversation to learn new vocabulary words and encourage turn-taking.