This research utilised a "stimulated recall" methodology [Calderhead, J. 1981. "Stimulated Recall: A Method for Research on Teaching." "British Journal of Educational Psychology" 51: 211-217] to explore the potential of African folklore, specifically Ghanaian folk stories in the development of children's reflective thinking about social life. The research was based on Ghanaian folklore for children, which is popularly known as "By the Fireside Stories", encapsulated traditionally as "Anansesem" or "Spider stories" among the Akan of Ghana. Data were collected through storytelling to a group of children and inviting them to recall their concurrent thinking during and after the storytelling. The children's cognitive recall processes were stimulated by questions and story character dramatisation recorded on a digital video recorder and played back to the children. Findings showed major contributions to children's learning and development related to imagination, concept formation and thinking, and beyond the self in social relationship. This paper draws attention to how traditional oral storytelling can be an important part of early childhood education to develop children's reflective thinking about social life.