Generative AI enables educators to create multimodal, interactive stories that promote engagement, facilitate L2 vocabulary acquisition, and scaffold language comprehension. While narrative games such as RPGs have the potential to serve as the principal medium of instruction, many commercial games lack specific pedagogical design for use in the classroom. However, developing tailor-made narrative games for language learning requires substantial time and effort, potentially limiting the feasibility for creating such in-class tools. This study explores how generative AI can streamline the process of creating interactive narratives designed for language learning purposes. Specifically, this study utilized ChatGPT and DALL-E 3—used in accordance with current copyright and fair use guidelines—to create a fully illustrated interactive story with branching narrative paths and inbuilt translation functionality for static story elements. The reduction in content creation time allows educators to create personalized, adaptable language-learning materials suited for specific language levels, student interests, and curricular goals. This study presents the theoretical framework for designing AI-assisted interactive stories and examines the benefits of using generative AI to support the development of learner-centered digital tools for education.