Designed to develop an appreciation of folktales as a literary type and a love for the oral tradition, this unit on the telling of folktales from the oral tradition, with an emphasis on Appalachian tales, can be adapted for use as an introduction to the study of the short story; to begin a study of regional writers or regional literature; to de-formalize public speaking units or classes; or as the motivational tool to encourage students to explore their own culture. Intended for use by the classroom teacher, this guide lists the objectives of the unit and the language arts skills to be acquired through its use. There is a list of preparations the teacher should make before beginning the unit. Following a brief discussion of literary, popular, and oral traditions is a list of collections of American and Appalachian folk tales to be used by both teachers and students throughout the unit. The unit also includes profiles of regional folktale collectors in Knox County, Tennessee; films and records to be used; names of resource persons; student activities; and two sample assignments. The unit concludes with suggested methods of student evaluation. (CM)