Yes — the sentence is correct.
Here’s why, in easy steps:
- Subject: "The excavator" — who or what the sentence is about.
- Verb: "digs" — the action the excavator does.
- Object: "big holes" — what it digs.
- Extra info: "with its giant bucket" — tells us how it digs (using the bucket) and "its" shows the bucket belongs to the excavator.
Everything is in the right order, the words are spelled and capitalized correctly, and the sentence ends with a period.
Some simple alternative sentences you could try:
- The excavator digs a big hole with its big bucket.
- The excavator digs big holes.
- It digs holes with its giant bucket.
Try changing one word to practice: can you make it past tense? (Answer: "The excavator dug big holes with its giant bucket.")