Sort of. Natively, it's best at doing "moving things around," like they are paper cut-outs on popsicle sticks. You can do frame by frame animations, but they are a bit system-intensive for the engine to run, and you have to draw each frame by hand. The newest version does allow you to important movie files and play them though, you'd just need to do the animations in something else and export them, but these would be canned.