This article considers Guillermo Del Toro's "Pan's Labyrinth" as a text which utilises key codes and conventions of children's literature as a means of encountering the trauma of Fascism. The article begins by placing "Pan's Labyrinth" at a contextual crossroads involving fairy tale and a Spanish cinematic tradition and considers the significance of the text as a hybrid creation. It then explores some of the tropes and motifs that are re-imagined within the narrative. There follows an investigation of the film as a testament to the importance of fiction and fantasy when faced with the very real consequences of war, oppression and trauma. Finally, "Pan's Labyrinth" is considered alongside a heritage of children's literature whose motifs, symbols and figures are remarkably available for appropriation, re-invention and renewal.