This research aims to develop a multimedia-based picture story tool to help with the reading skills of early-grade students in State Elementary School at Ternate City. This is a developmental research with data collected from 35 students of State Elementary School in Ternate City. Based on the data collection and analysis techniques, the following findings were presented; (1) the product design needs to be applied to the initial reading learning, (2) students were able to pronounce letters, and spell/read words, at a very good category of 94, 34%, respectively and (3) 10 students were in an excellent category with a presentation of 89% during the field trial process. In conclusion, the overall reading skill of students in State Elementary School in Ternate before applying multimedia was 1.6% and less good. However, it increased to 3.9% in the good category after its implementation.