To study about the process of creating children theatre that adapted from literary works for adult, "Loogham with three companions and the 8th color of the rainbow". Besides, the research endeavors to examine the conception and aesthetic appreciation of a group of 6-12 year-old children and adults. The area of the research is to create a child theatre from such literary work by selecting 2 short stories from the book, namely "Loogham with three companions" and The 8th color of the rainbow", and merge them together. The paper explains the whole process of creating the production by separating into 3 parts: pre-production, production, and post-production. In order to study about the audience's appreciation, I brought may production on tour to the two secondary schools and performed 1 round a school. The audience was limited just for 6-12 years old and there were 200 students attending. Besides, the production was also restaging 3 rounds for a group of adult audience, approximately 200 people. The project showed that a body of knowledge can be delivered by a fairy tale form child theatre, which present variety of theatre techniques, through pink lighting and piano music box. Moreover, simple costumes, scenes and props are designed to satire the capitalism. In summing up, the research results reveal that the level of the satisfaction for the play production, "Loogham with three companions and the 8th color of the rainbow", from an audience of all ages and genders is equivalent to 4.40. The first three theatre elements that accomplish audience's pleasure are actors, play script and music and sound effects 21.80%, 16.80%, 15.80% by order. For the characters and performers, most audiences admire comic characters, skilled performers who portray some role such as a soldier, the princess, and the queen. However, the adult and child audiences have different aspects of admiration to the princess. Since her characteristics and appearance are different from conventional princess. For the conception of the play that the 6-12 year-old audiences perceived is that they appreciatied the play as a didactic work conveying certain themes: human beings cannot be defined by their appearances, the necessity of adjusting oneself by being considerate and hamonious. While adult audiences apprehended other themes, such as the theme of sufficiency. Everything is depended on out thinking, and the way of living one's live.