Kusuma, D. .; Nurzaman, B. Folklore Is an Important Part of Cultural Heritage That Contains Moral and Social Values. In an Educational Context, Folklore Not Only Functions As Entertainment, But Also As an Effective Learning Medium for Shaping children’s Character. This Article Discusses the Influence of Folklore on the Formation of children’s Character through Literary and Psychological Approaches. This Research Uses Qualitative Methods, Analysis Is Carried Out by Reviewing Relevant Literature and Research. The Research Results Show That Folklore Is Able to Instill Moral Values, Strengthen Cultural Identity, and Develop Empathy and Tolerance in Children. In Addition, the Emotional Influence Produced by Folklore Strengthens the Internalization of These Values in Children, Making It an Important Tool in Character Education. This Article Recommends Wider Use of Folklore in Education to Strengthen children’s Character Formation. JEAS 2024, 5, 84-91.