The paper examines education of children`s verse and cognitive development focusing on `literature capacity`, while discussing how the literature works influences on the cognitive development, and analyzing the hierarchy of the education of children`s verse according to developmental stages. For doing this, this, this study examined musical factors of rhymes, acoustic development, the structure of implementation and development of memory, and the relationship between parable structure and imaginary development. The result of the analysis shows that the development of recognition, memory and imagination through the education of children`s verse tended to increase gradually according to each stage and age. In other words, the development of recognition is mainly shown by infants and toddlers of less than 4 years old, whereas the development of memory and concept is shown by children before school ages, and the development of imagination was inferred to be shown by children before school ages and children of primary schools. Based in these results, the study examined in details how identical data can bring about different educational effects according to each developmental stage, and accordingly discussed various methods of literature education and diverse influences.