In this article, we examine how teachers in two kindergartens, one in New Zealand and one in China, used the stimulus of a fictional story combining mythical creatures from Maori and Chinese culture to enhance young children's sense of place and cultural identity. Sociocultural understandings about the role of collaboration and cultural tools in meaning-making informed the research design. Teachers' documentation about the children's learning throughout the project was analysed and focus group interviews were conducted with teachers and parents. Findings demonstrated that story-telling provided an effective stimulus for children's learning using a range of multi-literacies. It was also helpful for exploring and connecting children, teachers and families with significant aspects of the cultural backgrounds of the children. The research also revealed that teachers engaged in intentional teaching practices to achieve these outcomes but experienced challenges (pedagogical knots) as they used the story. Nonetheless, we argue that the use of storytelling can be a powerful tool for fostering greater understanding for children, teachers and families of their own and others' cultures.