This thesis is about the role of folktales in childrenâ€™s development and education. Its main target rnis how pre-primary teachers use folktales in the classroom. So, talking to this general objective, rnthe research sets three specific research questions. First, for what purposes do teachers use rnfolktales in the classroom? Second, how do preschool teachers tell folktales to children in the rnclassrooms? The third objective is how preschoolers react to these folktales. Finally, the study rnsuggests the implications of the study for future researchers. In this research, a social rnconstruction approach is used as a theoretical framework. As a methodology, this study uses rnqualitative approach and employed case study as a design. In addition, to get better ideas for the rntopics under discussion, textual analysis of the tales, interview, focus group discussion and rnobservation were made. All the data gathering instruments targeted to get better ideas related to rnthe research questions. The study uses interviews, observation, focus group discussions, and rndocument analysis. The primary target population is preschool teachers; however, parents of kids rnand school administrators are also included. Finally, the study has got the following findings. rnThose pre-primary teachers tell stories for kids in artificial contexts using reading. Second, the rnteachers use the folktales for four-measure purposes. These are for language teaching, for rnteaching moral values, for teaching creativity, and for developing childrenâ€™s cognitive skills. Kids rnalso enjoy folktales and become highly interactive when they listen to folktales. The study rnconcluded that folktales beyond amusement and entertainment helped kids to acquire learning rnoutcomes. Teachers can also teach different subject matters as long as they know how to choose rnappropriate folktales. For the future, Awi folktales should be studied from the perspectives of kids rnand their parents and the community as well. Other researchers should also study ways that the rninteractions, and meaning negotiations between teachers and kids. They can also study how do rnkids narrate their own stories for their peers. Overall, different individuals such as family rnmembers, teachers, friends, radio, television, and pictures, and so on narrate folktales. So, future rnresearchers should critically study these techniques. As a recommendation, Awi folktales are rnfacing endanger and therefore they should be collected, archived, retrieved, and used properly