Intended for administrators and policymakers as well as teachers, this digest discusses the nature of narratology and how it relates to language arts instruction. The digest first defines narratology as the structuralist study of narrative aimed at understanding how recurrent elements, themes, and patterns yield a set of universals that determine the make-up of a story. The digest then discusses the function of stories in human affairs, what structural analysis reveals about the nature of narratives, and how a child's concept of story develops. It also explores how culture affects the interpretation and telling of stories. Finally, the digest explains how the study of narrative relates to teaching and learning in the language arts. (HTH)