A storage container and play area combination kit includes a housing with a bottom wall and a perimeter wall. The perimeter wall has an upper edge defining an opening into the housing. A cover is pivotally coupled to the perimeter wall. A peripheral wall is attached to and extends upwardly from the cover. An upper wall is pivotally coupled to the peripheral wall. A dividing wall is attached to the peripheral wall and is spaced from and oriented parallel to the cover. A central compartment is defined between the dividing wall and the cover. The peripheral wall has a plurality of slots therein. A plurality of extension panels is positioned within the central compartment. The panels are extendable outwardly of the slots to define a play area backdrop having scene indicia thereon.