A thematic unit on folk literature designed for middle school English-as-a-Foreign-Language (EFL) instruction, for students with beginner to intermediate level skills, is presented. The intention in introducing literature at these levels is to provide positive experiences with literature in the target language, and to introduce the target culture. The relationship of reader to text is discussed with reference to relevant literature, and the roles of background knowledge (linguistic information, knowledge of the world, and knowledge of discourse structure) and schema theory in this relationship are examined. Advantages in the selection of folk literature for second language study are considered, and specific classroom techniques and activities are discussed. Considerations in selecting the sequence of stories presented are explored, and a sequence of five stories is presented, with notes on the authors and on class activities for the pre-reading, efferent (factual), aesthetic, and follow-up stages of reading. Contains 28 references. (MSE)