Choose the lesson you want to teach. You may want to find a story book that teaches a lesson directly or design a real-life interaction scenario that teaches a lesson that you can act out with the puppets.
Select the puppet(s) you intend to use. Make sure the puppets are appropriate for the lesson being taught. The better the fit, the easier it is to get your lesson across. For example if you are teaching a lesson on not being a bully, you may want two puppets with one puppet large and a bit gruff looking and the other puppet smaller and fragile looking.
Select the props you intend to use. If you are teaching a lesson on sharing you may want to use a popular toy or a snack that can be split in half as the prop. Design the scenery if you intend to use any. Scenery and props are optional, but can add a realistic touch to the lesson.
Develop the characters of the puppets. Depending on the lesson you intend to teach, you may want to give your puppets unique personalities or at least know how to express certain emotions using movement, body position and voice. Practice the emotions in front of a friend or a mirror until you get the right expressions. For example, if a puppet is supposed to be sad you may want to practice a downward face and withdrawn personality. You may also want to practice talking in a slow or soft voice with a couple of sniffles to express sadness.
Practice teaching the lesson with your puppets without any audience. Understand the actions and dialogue of each puppet and know how to express the right emotions at the appropriate time in the lesson. Ideally you will have resolved any issues during the lesson so that both puppets are happy and satisfied at the end. Know how to express these emotions. You might want the puppets to hug or walk off the stage holding hands as if they are good friends at the end of your lesson.
Set the stage for your puppet show. You may want to preface the lesson by explaining that you brought two of your good friends with you today to help you teach a story to the audience. Introduce your puppets to the audience in the personalities that they will be using throughout the lesson.
Teach the lesson using your puppets in a style similar to the one you practiced earlier. Ask your audience to interact when appropriate and ask them questions at the end of the puppet show to make sure they understood the lesson.