A story interactive grammar teaching system and method. The disclosed system is a computer-aided grammar learning system. Grammar rules are embedded in the animations provided in the interactive grammar teaching system. The user can self test and enhance his or her language abilities with the help of the system. The disclosed method can achieve the goals of providing immediate practice tests, interacting with users, and guiding users through stories. The method includes the steps of: establishing an animation database and at least one animation file, receiving a command input from a user, and executing the command using the interactive grammar teaching system.