This research article is intended to arouse teachers' interest in the possibility of using creative drama as a supplementary instructional tool for enhancing their teaching as well as their students' learning. The article investigated: (1) the difficulties a teacher encountered in using creative drama as a supplementary instructional tool in a Hong Kong mentally retarded school; and (2) how creative drama can be a powerful medium for enhancing the language development of moderate mentally retarded children. The result found that creative drama has a positive effect upon the mild mentally handicapped students. The discussion will be of great significance as it provides substantial implications on curriculum development of creative drama in the teacher education programme for special education teachers.