The folktale is an unwritten literary product, transmitted from generation to generation through oral narration. The credit for its creation does not go to a specific individual or individuals, but rather all classes of people participate in its creation, narration, and influence. It is a reflection of the illusions, perceptions, and dreams of societies throughout the ages.Studying folktales helps us understand the philosophy, nature, and history of a particular people in a particular country, and also helps us understand the development of human thinking in general. In this research book, the author tried to assume that the "folk tale" is like a people''s "daydream." This is humanity''s common dream of a better life, compensating for its failure and suffering. This study was limited to tales of elves and the supernatural specifically.