ABSTRACT This qualitative case study investigated students' perceptions, expectations, and reflections on drama‐based activities conducted in a higher education institution in China. An intact class of 20 English as a Foreign Language (EFL) learners participated in a 5‐week drama project. Data were collected from a student needs analysis survey, students' dramatic works, reflective writing, focus group discussion, and post‐project feedback survey. Findings of the study shed light on drama‐based teaching strategies. Regarding teaching content, students' needs revealed expectations of teacher guidance on contextual backgrounds of the work and the author, literary knowledge, language instruction, and comprehension scaffolding. Students' perceptions of performative activities indicate that opportunities for collaboration and creativity facilitated learners' immersion in dramatic activities. The immersion further influenced cognitive, affective, and linguistic capacities, together with enhancement in interpersonal relationships and social skills. Implications of the findings for literacy teaching were translated into a model for a comprehensive approach to drama‐based pedagogy.