Morality and Rule of Law is a key subject in primary schools for implementing the fundamental task of educating students with virtues. In this process, educational drama plays a significant role: at the cognitive level, it helps students understand and internalize moral concepts; at the emotional level, it fosters empathy and aligns their values; and at the behavioral level, it guides moral practice and the development of moral habits. The integration of educational drama into this course should follow a three-stage progression: 1) cognitive development through task-driven learning and value clarification; 2) practical application through situational immersion and embodied experience; 3) application and elevation through moral development and the integration of knowledge and practice. These three stages, though distinct, work together to enhance students' core competencies and promote a holistic development of their knowledge, emotions, will, and actions.