This booklet examines folk tales and fairy stories derived from folk wisdom from the standpoint that they are not an escape from reality, but that they help people deal with the reality that technology cannot explain. The book focuses on the pros and cons of folk and fairy tales and on their nature and function. It also presents an analysis of a contemporary fairy tale. The book concludes with a discussion of why, when, and how to tell fairy tales and a bibliography of books for children of all ages. (HTH)