The theme of this paper is the understanding and implementation of the phenomenon of lying in childrens literature into an efficient way of teaching children to be honest and to develop moral values. The aim of this paper is to present the definition and the idea of lying, the development of the thought of lying in children, and how that development can be positively used to implement moral and honest ideas of thinking in children through childrens literature and its fictional characters. In order to do so, I will briefly explain the phenomenon of lying; its moral and philosophical aspects, as well as the development of lying in children. The main emphasis of this paper will be laid on the appearance of lies and lying characters in childrens literature, followed by the impact that this kind of behaviour imposed on the fictional characters, for which purpose I have briefly summarised some children stories containing such behaviour and then analysed how the actions and interactions that included lying of characters/protagonists influenced the development of morality and honesty in the above mentioned figures, including how those patterns could enrich children's experience of introducing the recognition, as well as the value of morality and honesty.