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This article examines the role of fantasy in children’s literature and its impact on children’s thinking and imagination. Within the framework of Children's Literature, the study analyzes how fantasy elements contribute to cognitive development, creative thinking, and the formation of moral perceptions in children. It also highlights how fantasy narratives enhance problem-solving skills, abstract thinking, and emotional empathy. The works of J. K. Rowling and the fairy tales of Roald Dahl are used as key examples. The findings suggest that fantasy plays an important educational and developmental role in shaping children’s cognitive growth.