Set up stations in different rooms of the house and rotate with Music. Keep your groups of girls small, no more than 4 per group but 2 would be ideal! Use your creativity in setting up stations. You could have a station for:
Painting fingernails
Offer a couple of different colors for them to choose from. Offer decal stickers or glitter to jazz up the activity. Allow plenty of time to let their nails dry......
Hair styled & simple lipstick
For this age of girls I would stay away from any type of eye make-up but most mothers will not mind a touch of lip gloss for shine. Body glitter is also fun to highlight their features.
Craft area.
Bead a take-home necklace or make a jeweled ring with pipe cleaners and beads. Choose a craft that is fast and easy to do.
Storytime dramatic reading
To get the girls into the spirit of dress up fun have an older family member dress up and entertain the girls with a creative story. You might even choose one where the girls can act out some of the parts themselves. This makes a fun "gathering game" as kids arrive at the party.
Scrapbook page center.
Supply this center with diecuts of castles, flowers or magic wands very affordable at scrapbook stores. Let the girls use markers and craft paper punches to create a scrapbook page to add their fairy tale photo to later.
After all the groups rotate and are all dolled up, have a photography room set up with a dressing panel and backdrop for photo's. I was easily able to round up several costumes including Pocahontus, Cinderella, Jasmine of Alladin, Dorthy from the Wizard of Oz and Ezmerelda, the gypsy from The Hunchback of Notre Dame. Remember to have several different sized costumes to fit different sized girls.