The role of fairy tales in preschool-aged children's emotional and cognitive development is discussed. Separating good from evil makes it easier for children to cope with conflicting emotions. This encourages creative thinking and personality growth as representations of conscious and unconscious motifs in stories guide children through their thoughts. Fairy tales even provide secure, comforting, and supporting feelings though they relate to conflicts or endangerment themes, fostering positive self-image and emotional intelligence in kids. It was found that a happy ending to a fairy tale lessens tension, alleviates anxiety arising from developmental fears, and meets the need for justice among kids. Representation of negative characters in these stories contributes positively to emotional development. In Australia, research has shown that talking about fairy tales helps a child meet emotional needs, especially when told in groups with accompanying acting out. In addition, the article examines how therapeutic fairy tales can decrease fearfulness while dealing with actual life problems throughout this period. Moreover, the paper explores how fairy tales might be used as therapy to address anxiety as well as real-life conflicts during emotional development. Essential for appreciating children’s fantasies that can lead to internal conflicts because of their inability to express themselves in any other manner, it is pertinent for parents and their kids to have storytelling sessions where they can talk about anything. Lastly, fairy tales are sources of inspiration; they teach morals and values; tools necessary for mental growth, cognitive advancement, moral maturity, and creativity, making people think critically and interrogatively.