This paper explores the application of George C. Homans' Social Exchange Theory to the Manipuri folktale "Woman and Doll." The study aims to demonstrate how Homans' propositions regarding behavioral psychology, economic exchange, influence dynamics, and small group structure elucidate the underlying social behaviors. The folktale centers on a rich widow's daughter who bonds intensely with a doll, impacting her social interactions and marriage. The study explores her behavior, reflecting Homans' concept of seeking rewards and avoiding costs. It also views her attachment to the doll and subsequent social isolation as an economic exchange. Further, there is an analysis of the influence dynamics when the daughter gains a unique ability, altering the balance of social exchanges in her favor. The small group structure shifts as she integrates into her husband's home, achieving equilibrium through her newfound influence.