This article reveals the essence of children’s word creation (a process of creating new words by a child on the basis of lexical, grammar and phonetic material of a certain language). The stages of children’s word creation during preschool childhood are characterized. The specific features of children’s word creation are determined (children can change the name or letters of certain things, and due to this changing some functions of the things can be shown; children can change both a word, and a word combination). The role of word creation in the process of children’s speech development is revealed too.