Oral literature represents totality of notes, oral stories and legends shared by our ancestors, it is subject to changes and allows the listener to added his own interpretation to already told story. The development of oral literature began at the age of Humanism and Renaissance and over the centuries it has changed its name from oral over anonymous, peasant, and folk to the traditional literature. In the exchange of oral stories most common types were fairy tales, fables, jokes, riddles and myths whose functions were multiple. The main purpose of oral literature was to educate children and teach them moral values of life, but at the same time to entertain listeners. Folk customs and myths also form a significant part of culture and tradition of the Croatian people, characterized by their way of life and their beliefs. Many oral stories were based on customs and myths whose characters were unavoidable fairies and witches and other mythical creatures. However, the fairy tale and fable are central when it comes to oral prose. Through the interpretation of six fairy tales and two fables are presented two oral stories that were retold for generations in the village of Dolac Donji. Croatian oral literature represents a treasure of the Croatian people that for centuries guarded and determined their national and spiritual identity.