My wife and I have always encouraged our kids to play using their imagination. At home, we limit their time spent watching TV. They also don't have any game consules or tablets.
The result? Our kids love playing with physical toys like Lego blocks. We started with Duplo blocks and then graduated to more and more complex Lego sets. My wife and I sit down with them to build the sets as it can get difficult for them to follow the instructions.
Often times, after building a set, they disassemble it. That actually drove me a little mad until I realized that they were trying to build it back by themselves using their imagination. I know because they "talk to themselves", which I used to do when I was a kid. It was tough for me to let go and let them be because parts from one set inevitably got lost and got mixed with parts from another set. I'm a bit of a neat freak so finding random Lego blocks around the house really tested my limits.
And that's the beauty of having kids, you learn as much from them as they do from you.