People use stories to construct meaning and tocommunicate. The skills of storytelling are crucial for engagingincasual conversation and successful communication ingeneral. In the 21st century children are faced with variousmodalities of representation, which require new ways ofreading, listening, interpreting and thinking. Children areengaged in those different modes of interaction and the nonlinear and multimedia world. Along with the advance oftechnology, the classic storytelling has also seen somedevelopments in EFL classrooms around the world. In amodern classroom it is necessary to address multipleliteracies and digital storytelling combines the ancient art oftelling stories with a variety of digital tools and multimedia.Computer-aided storytelling has become an important tool ofinstruction for students of English as a foreign language, aswell as their educators. This article aims to present anoverview of the practical uses of computer-aided storytelling inEnglish language classrooms. Nevertheless, theimplementation of the aforementioned instructional tools inEFL classrooms entails different challenges for both studentsand educators. The paper includes the discussion of the mostimportant benefits and challenges of computer-aidedstorytelling.