Teach your students that compound words are made by joining two or more words to make another word. Point out that the two words can be nouns, non-nouns, or a noun and a non-noun. Also point out that the two words do not always keep the same meaning as they has as separate words.
Write the following words on the board in any order: park, cake, road, work, house, pan, ball. shop, bird, rail. Have students combine the words to make compound words. (ballpark, birdhouse, pancake, railroad, workshop.
Extend the activity using other compound words.