This study examined the effectiveness of a structured play-based intervention in promoting peer engagement and inclusion among preschoolers at Pardo Elementary School in A. Gabuya St., Pardo Cebu City Philippines.. Anchored on Vygotsky’s Social Development Theory and supported by Bandura’s Social Learning Theory, the research employed a mixed methods quasi-experimental design. Quantitative data were collected through pre-test and post-test classroom observations measuring peer interaction frequency, cooperative behaviors, and inclusion levels. Qualitative data were gathered through semi-structured interviews with teachers and parents. Results showed significant improvement in peer interaction frequency (from M=2.3 to M=4.1), cooperative behaviors (from 45% to 78%), and inclusion scores (from 52% to 85%). Teachers and parents reported enhanced confidence, reduced social isolation, and improved communication skills among children. The findings demonstrate that structured play-based strategies significantly enhance inclusive classroom dynamics.