General Background Literacy is a primary foundation for third-grade students to decode increasingly complex educational materials and process textual information. Specific Background Despite its importance, young learners frequently demonstrate low literacy interest and poor conceptual grasp due to monotonous, teacher-centered methodologies in classrooms. Knowledge Gap While decoding is traditionally treated as a solitary and abstract task, there is limited application of hands-on frameworks that convert textual data into tangible social interactions. Aims This implementation study integrates a structured pedagogical model to cultivate literacy activity, fluency, and motivation among third-grade learners through physical creation tasks. Results Following structured pedagogical stages, participants actively processed textual narratives into physical outputs such as mini pop-up storybooks and story magazines. This collaborative environment triggered natural peer tutoring, elevating decoding fluency and main idea identification from moderate or low levels to high proficiency. Furthermore, constructing visual representations directly facilitated the mastery of unfamiliar terms. Novelty Transforming passive decoding tasks into concrete physical construction processes fundamentally shifts primary literacy education into a dynamic, socially interactive experience. Implications Educators must adopt constructivist methodologies with structured time management and differentiated group roles to secure active participation and literacy mastery in early childhood settings. Highlights: Constructing physical pop-up storybooks successfully motivates third-grade learners to decode complex texts. Collaborative group tasks trigger natural peer tutoring among students with diverse literacy levels. Tangible learning models convert solitary abstract study into highly interactive social activities. Keywords: Pop-Up Storybooks, Peer Tutoring, Literacy Development, Collaborative Tasks, Third Grade Learners