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The article presents correctional methods for forming storytelling ability in preschool children with mental retardation. This skill is developed by implementing an educational program called Speech Development. Preschool pedagogy offers a variety of methods to teach how to tell stories, but those tend to disregard the specifics of speech and cognitive development in such a preschool group as mentally retarded children. The proposed method is based on P. Galperin’s principle of gradual formation of mental actions and suggests dividing the storytelling learning process into steps and sub-steps by providing each child with assistance he or she needs at each stage (sub-stage). This approach to the skills formation may have a positive effect on correctional and pedagogical work. The method involves teaching storytelling based on picture stories and descriptive stories.