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The purpose of this action research study is to investigate how pre-service teachers understand, develop, and apply 21st century skills through developing and implementing a digital storytelling assignment in a literacy methods course. Data was analyzed in two phases using visual analysis and thematic analysis processes. Students created digital stories that centered on five distinct themes: 1) popular culture interests; 2) social justice; 3) alternative versions of popular children’s literature; 4) early childhood curriculum expectations; and 5) personal experiences. Analysis of the survey data indicates that students experienced a significant degree of initial trepidation over developing the digital stories that was resolved by the end of the project.