In my master’s thesis I tackle the topic of children’s reception of fairytales: throughout the research I am interested in child’s understanding, perception and acceptance of fairytales. In order to find out what kind of fairytales children understand best, I took part in participant observation where I read to children both folk tales and classic artificial fairytales. My key findings come as a result after analysing case studies on children’s literature. In this particular case the most important were analyses and explanations of fairytales, types of fairytales and literary-theoretical characteristics of fairytales cited by Lüthi. I also focused on the various effects that fairytales have on children, as the children’s reception of fairytales depends on them. In the theoretical findings of other authors I have incorporated my own thoughts and findings from the field (participant observation) and the results of the questionnaires I distributed to children’s parents. Through the survey questionnaires I tried to understand why children have a better understanding of a particular type of fairytale and what activities and factors influence their understanding and perception of fairytales. In this master’s thesis I was also interested in the presence of literature in the everyday life of children and their families or in the so-called family literacy.