This literature review examines the utilization of folktales as reading materials for English as a Foreign Language (EFL) students. Folktales have long been recognized as valuable cultural resources that can enhance language learning and promote cultural understanding. The purpose of this review is to explore the existing research on the use of folktales in EFL classrooms and identify their potential benefits and challenges. The review follows a systematic approach, gathering relevant studies from various sources such as academic databases, books, and journals. The selected studies cover a wide range of contexts, including different grade levels, language proficiency levels, and cultural backgrounds. The findings indicate that incorporating folktales into EFL instruction offers several advantages. Firstly, folktales provide authentic and engaging reading materials that can capture students' interest and motivation. They also expose learners to diverse language structures, vocabulary, and cultural aspects, promoting both linguistic and cultural competence. Moreover, folktales encourage critical thinking, imagination, and creativity through the exploration of themes, morals, and characters. Strategies such as pre-reading activities, vocabulary support, and post-reading discussions are suggested to overcome these challenges and maximize the benefits of using folktales. As a result, the literature review underscores the potential of folktales as effective reading materials for EFL students. It calls for further research and practical applications that consider context-specific factors to optimize the integration of folktales in EFL classrooms and facilitate language learning and cultural appreciation.Keywords: Folktales, reading materials, EFL classrooms