In this thesis, an attempt was made to present the connection between fiction and faction in oral prose and its importance. Primarily, the paper explains the origin of oral literature, and then tried to analyze the concepts of fiction and faction. After a short theoretical introduction, we move on to the explanation of oral prose, with special reference to fairy tales, fables, legends and short stories. Furthermore, the topic of historical traditions related to Illyrian and Old Croatian topics is discussed. Here, special attention is paid to old Croatian topics that speak of Croatian rulers of national blood and the Ottoman conquests and the crimes they committed because they are responsible for one of the meanest and bloodiest parts of Christian history in these areas. Moreover, the rite of crucifixion by which Christians tried to defend themselves from the Ottomans is also mentioned, as well as the most famous hajduks and uskoks, folk heroes who fought against the Ottomans. Also, the paper mentions mythical and demonological traditions. These traditions have a specific meaning for the people because they find in them hope for a better tomorrow and justifications for the evil of this world.