The literary genre explored in this study is The Fantastic Tale for Children, which combines magic and reality. Two examples of the "pure" fantastic tale are "The Return of the Twelves" by Pauline Clarke and "Tom's Midnight Garden" by Philippa Pearce. The motifs of the fantastic tale are methods which connect the world of the principal characters with a mythical or remote world, such as the living toy figures, the strange children, the modern witches, the supernatural animal figures, minature people, the combat between good and evil, journeys through space and time, and the door. The consequences of genre research for literary criticism of the fantastic tale are that with this literature, the critic must judge how independently or unoriginally the motifs are treated, and he must determine if motifs of nonsense literature accord with the motifs of the fantastic tale. The educational purposes of the fantastic tale are to stimulate feeling and imagination; to give moral lessons and encourage philosophical discussions; and to satisfy the needs of children. Psychological problems related to the child's interest in the magic apparatus and their capacity for understanding it and for understanding the various ideas in the fantastic tale are discussed. A list of the 32 fantastic tales discussed is given as are references. (For related document, see ED 022 750.) (DB)