Children LOVE to make believe, making a costume dress up party the ideal party for young children. If you are planning an all-girl birthday party, my princess party featuring my hand-drawn princesses and unicorn will set the stage for your child's princess themed costume ball!
If you are looking for something less girly, check out my Royally Awesome party that includes knights, a prince and a horse instead of a unicorn.
For activities, you can have a costume party, play bingo, make dream catchers, have a scavenger hunt, play Stepmother Says (following the rules of Simon Says but with Stepmother instead of Simon!), create crowns out of cardstock and decorate with markers and sticker jewels or just let them pretend the day away.
At party's end (or even at its beginning!) an inexpensive tiara, purse, or a treasure chest or loot bag filled with "royal treasure" (chocolate coins, gold foil wrapped caramels, etc.) make excellent princess themed party favors.