I like to do at least one puppet making project a year with young children. It gives us as chance to invent a character and practice communication with fun, silly voices.
Hand puppets can be made from socks, mittens, paper bags or just pieces of construction paper folded in half and cut out in the shape of a robot or alien. Finger puppets are always the easiest way to start with a puppetry unit, especially for me, because I have bags full of basic rounded bodies as a foundation for kids to glue features. The trick is to have lots of options in terms of materials: tape, beads, buttons, beady eyes, foam, paper, markers, paint, yarn, etc. You want them to decide who to make and how to make them. Then sit back and watch the show biz magic happen.