This is to report examples of literature therapy attempted with the medium of folktales to enable college students to acquire sound self-narrative. The ultimate goal of literature education should be to enrich students` sentiments and their lives through literary works. So I made a program to heal their traumas by guiding them to look at their lives with more positive and optimistic mind. This literary therapy was processed as follows. First, I have let the college students write their own life histories(self-narratives). Next, I asked them to read folktales individually and write their impressions of those stories. Thirdly, I organized group counseling to exchange their ideas about those stories freely. During the group counseling, I showed my own interpretation of the folktales to the students, from the viewpoint of literature therapy. And let them make the last description of their impressions about the stories. The last step of literature therapy is to verify the effect of literary therapy, by analyzing their last reports and comparing them with the first ones. As the result of this experiment, all students who participated in the literary therapy have admitted that their trauma was cured to a great extent. In conclusion, this research proved that the program, combined with literary therapy and the art of teaching, can generate exceptional synergy effects.