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A student of mine asked, "What is a folktale?" I used this website to help support my answer : www.wisegeek.com A folktale is a type of traditional story that tries to explain or understand the world. Such stories were orally passed down through the generations and feature morals or lessons. The stories usually take place long ago in a faraway place and are woven around talking animals, royalty, peasants, or mythical creatures.