This research is to analyze "Soul-mouse story" in terms of literature therapy and apply them into the field of education. Where the literature classes are held is the field where student`s narrative, literary narrative and teacher`s narrative interact. Therefore, it is a big mistake that literature education has been focused on examining the literature itself or on simply implanting educators` viewpoints and philosophy to the students. The ultimate goal of literature education should be to enrich students` sentiments and their lives through literary works. In order to achieve this goal, educators` sentiment should be healthy. This research is to report examples of literature therapy attempted with the medium of folktales to enable students, who desire to teach Korean literature, to acquire sound self-narrative. As the result of this study, all students who participated in the literature therapy have admitted that their trauma was cured to a great extent and they got encouraged to realize their merits. In conclusion, this research proved that "Soul-mouse story" was very effective for them to be well-qualified teachers.