This study examines the impact of collaborative storytelling methods on group interactions and story quality in primary school students. Participants (97 students, grades 1–3) engaged in tangible digital collaborative storytelling (TDST), collaborative digital storytelling (DST), and traditional storytelling (TST). The research explored three hypotheses: (1) TDST promotes more inclusive and prosocial interactions than DST, (2) collaborative stories show higher formal and content quality than individual stories, and (3) collaboration parameters influence story quality across methodologies. Employing a cross-sectional design, the findings demonstrated significant differences in group interactions and story characteristics In our study, students engaged in tangible digital collaborative storytelling (TDST) demonstrated reduced interruptions and enhanced task focus compared to traditional methods. Collaborative stories, particularly in TDST, were concise, with fewer off-task elements and higher narrative cohesion than individual stories. Notably, a significant correlation between story cohesion and inclusive space was observed. These findings highlight the significance of integrating tangible digital tools, providing valuable insights into enhancing collaborative storytelling for positive group dynamics and improved story quality among young students. This research holds implications for educational environments and therapeutic interventions, emphasizing the role of collaborative storytelling in fostering communication and group cohesion.