Oral literature is very important part of every nation `s culture . Legends and folk tales are a significant part of the oral literature of a certain nation. Legends and folk tales can offer us much more than a short term entertainment and an interesting story . T hat can be information such as the customs of that time, the lifestyle or superstitons. The paper presents the folk tales and legends of Cavtat and Dubrovnik that are classified by cate gories. In this paper, we can find historical tales in which a certain historical event is presented to us . An interesting element is interweaving of truth and imagination and impossibility of separating one from the other. The paper also contains etiological traditions that help us learn why a certainlearn why a certain locality got the locality got the name that it has. name that it has. Mythological and demonological folks tell us about Mythological and demonological folks tell us about creaturescreatures thatthat have been have been interesting to people since the time immemorial because of their supernatural powers.interesting to people since the time immemorial because of their supernatural powers. In In mythological tales we got fairies, amythological tales we got fairies, and in demonological nd in demonological there are various demonological there are various demonological creatures such asa witches, werewolves,creatures such asa witches, werewolves, tenac, tenac, moras (bloodsucking witches) and ghosts. The last category are eshatological tales that tell us about encounters with dead, unbaptized children who are dressed in a red gown and they can bring luck to a random passerby if he/she manages to steal child´s red cap. The areas of Cavtat and Dubrovnik have a rich opus of folk tales and legends that have been preserved by the nation for centuries. Young people have an important task of preserving the inherited goods and passing it on to the next generations.