Folktales have been passed on through generations and consists of tales by the people. This genre is the oldest form of literature and it was originally told orally. The use of folktales in the classroom encourages pupils to use their imagination. In this essay I investigate how folktales can be used to stimulate children’s imagination and how imagination can benefit their learning. I also examine how cultural knowledge, critical thinking and emotional development can be encouraged through the use of folktales. Even though folktales are often told with the purpose to entertain, research has shown that they can also encourage language acquisition and understanding of the world among children.For example, it has been shown that folktales can help children gain a better understanding of their own feelings and the world around them. Research has also shown that folktales can function as a link between English as a foreign language and the pupils’ native language. The purpose with this essay is therefore to examine how folktales can be of use to encourage learning, particularly in the English classroom.