It is of great importance to keep and pass into new generations, the rich culture and tradition of the island of Cres, as well as the legend of Masmalić. “Children are our future. What we teach them, the values we set for them as the right ones to live by, these are what they will take into the world of their future.” (Jurdana, 2015:33). In this paper you can find definitions about what culture is, homeland, cultural heritage, folk literature, as well as the information about their importance for a child's upbringing. A closer look has been taken into the description of the island of Cres and Tramuntana, as the farthest northern part of the island and the well-known cattle tradition of that part. The legend of Masmalić – a mischievous forest dwarf, which lives in the forest of Tramuntana, has also been described. The legend and various island's stories about the Masmalić have encouraged the RUTA association, in collaboration with the kindergarten and the school of Cres, to take up a project called “The secret of Masmalić” and thus encourage children and young people and increase their awareness to take care of nature and the tradition of the people from their island. Various activities concerning the project have been described, with the stress on the activities done by the kindergarten group “Voćko“ from the “Girice“ kindergarten in Cres. The project has resulted in two story books on homeland which have also been discussed in this paper, with examples which can be used in working with pre-school children.