Rain Sticks - DIY recycled / upcycled craft idea for an older toddler or preschooler. Music you can make! Kids also learn fine motor skills, responsibility, South American culture and music / rhythm / percussion.
Felt-board nativity: "The kids love it and enjoy moving them all around. Baby Jesus has been held by everyone in the scene including the angels!" - I've seen the felt Christmas tree but LOVE the felt nativity wall.
This could work with the story of the wise men and the star leading them to baby Jesus. These stars look easy with craft sticks, glue and glitter. You could use a verse from the Jesus story.OR for Abraham stars for the wall!