Recommended by my Pastor, Rolf Preus, is A Child’s Garden of Bible Stories by Arthur W. Gross.
There are plenty of Bible story books and their quality varies widely. This one has a mostly highly important distinction from the great run of Bible story books: It presents the Bible as a book about Jesus.
To many of you, this will sound so obvious that you might wonder, don’t all of them? Well, no, they don’t. Many Bible story books do a passable job in the New Testament, but they fail badly in the Old Testament. The Old Testament books are books about Jesus, and this Bible story book presents the stories in a way to give children the understanding that the stories are about Jesus.
Used paperback editions on Amazon are as cheap as $0.01 (that is not a misprint, one cent) and used hardbound are as cheap as $0.99. At ChristianBook.com, the hardcover edition currently is on sale, and checkout is easy with PayPal. They also are offering bulk discounts.
There are two companion products, a New Testament workbook and an Old Testament workbook.