This study investigated the use of a playful, narrative, vignette-based method, called Story Magician’s Play Time (SMPT), in supporting children’s social-emotional reasoning and in helping children practice their social skills. We set out to examine (a) in what ways children use SMPT sessions to explore social interaction situations and to practice social skills, and (b) what story content and narrative play behavior during the SMPT sessions reveal about the social-emotional competence of children, in terms of acquisition and performance skills. The data were collected during SMPT storytelling sessions where 5- to 6-year-old children narrated stories of familiar but challenging daily situations and enacted their story in play. The data were analyzed using thematic analysis. The results suggest that the children had knowledge of socially responsible behaviors, but that they also had difficulties executing these behaviors in play. SMPT enabled the children to participate, experiment, and reflect on the emotions and strategies needed for developing socially sustainable solutions.