The aim of this paper is to present the importance of oral epic literature, within which fiction and faction intertwine. The paper begins with a brief explanation of oral literature, faction and fiction, followed by chapters on novellas, fairy tales, and fables. A great emphasis is placed on tales, which are very important for oral literature, and various types of tales are discussed. Historical tales which talk about Croatian rulers, the Ottoman occupation, and their crimes against the people, the appearance of hajduks and uskoks, their heroes and leaders who fought against the Ottomans are mentioned first. The chapter on historical tales concludes with the legendary liberations from the Ottomans, with the legendary liberation of Sinj, aided by Our Lady of Sinj, standing out. In the following chapters, the remaining types of traditions are mentioned, such as etiological, mythical, demonological, and eschatological, which are filled with supernatural elements. Some of these were particularly popular among the people, especially the mythical and demonological ones. At the very end, we find legends telling of saints' lives and miracles, in whose authenticity no one doubts.