In Lithuania, research on folktales from an anthropological perspective is a new topic. This article aims broaden the research on traditional folktales. It highlights the methodological issues of ethnographic research of folktales as cultural heritage, and seeks to answer how ethnographic research of folktales could reveal the human phenomenon and the contexts that surround folktales. It examines the primary outcomes of ethnographic fieldwork: attitudes towards tales and perceptions of the tradition of storytelling, the role of context in defining the meaning of a tale, and the individual’s relationship to the tale, reflecting issues of interrelationship, community and identity.