The main objective of the present study has been to examine the function of folktales in LimmurnGelila of Eastern Wallagga Oromo based on the context of use in that society. The study isrnmainly concerned with the functional analysis of folktales of the society in which this study isrnconducted by using functional theory. To achieve this goal, an attempt was made to collectrnfolktales that depict the socio- cultural function, socio- economic function, socio- politicalrnfunction and uses as a medium of instruction from six kebele of Limmu Wereda. These are;rnGelila, Saphera, Bolale, Warsu, Maggibo and Lobica. The three instruments of data collection;rninterview, observation and focus group discussion were used in the study. In the study snowballrnsampling were used to select those 10 informants explained in the table of appendix iii. All therncollected data were transcribed into Afan Oromo and only 20 folktales were translated intornEnglish and analyzed qualitatively. But, the rest 30 folktales were attached as appendix of thernthesis without translation. The study shows that folktales are narrated for different functions inrnLimmu Gelila Oromo. Because, those people use folktales as a medium of instruction, expressrntheir economy and culture besides reflecting their internal feeling to ignore the idea of politicalrnleaders informally or indirectly. It is also found out that one folktale of Limmu Gelila Oromo canrnbe multifunctional. Limmu Gelila people reflect their norm and moral codes through theirrnfolktales. Finally, the researcher recommends in the society a study to be conducted on otherrngenres of folklore, folktales should be incorporated in Educational Curriculum and NGOs workrnin culture help institutions and researchers.