Oral literature is a part of intangible cultural heritage which represents importance for all nations. The legends presented in this paper reflect the particularities of customs, dialects and popular beliefs in Istrian oral tradition of which they originated. Arena, the roman building in Pula has always been mysterious to the locals as they have always wondered who built it and how. Because they couldn't find a logical explanation, they started inventing stories to explain the construction process of this magnificent building. The legends were written in different works of different authors, but were never included in a single work. In this paper the classification of stories is also present, highlighting the demonological stories. Demonological stories, or stories in general, are often related to fairy tales and legends, that's why these two genres are also analysed in this paper. Also the world of fairies is described from the traditional point of view as well as their emergence, description, classification and what they used to do. Since fairies, as mythological creatures, are connected to the nature, they can play a major role in bringing closer the beauties of culture and tradition to children. Considering that children literature is customised especially for children, the demonological story about Arena and the fairies should find it's place in every child's life.