Early reading comprehension is crucial for academic success, involving skills like making inferences and critical analysis, and the Early Grade Reading Assessment (EGRA) toolkit is a global standard for assessing these abilities. However, creating stories that meet EGRA’s standards is time-consuming and labor-intensive and requires expertise to ensure readability, narrative coherence, and educational value. In addition, creating these stories in Arabic is challenging due to the limited availability of high-quality resources and the language’s complex morphology, syntax, and diglossia. This research examines the use of large language models (LLMs), such as GPT-4 and Jais, to automate Arabic story generation, ensuring readability, narrative coherence, and cultural relevance. Evaluations using Arabic readability formulas (OSMAN and SAMER) show that LLMs, particularly Jais and GPT, can effectively produce high-quality, age-appropriate stories, offering a scalable solution to support educators and enhance the availability of Arabic reading materials for comprehension assessment.