Almost everyone has heard about the stories such as “Snow White and the Seven Dwarves” and “Little Red Riding Hood”, and is familiar with “Jack and the Beanstalk”, “The Hare and the Tortoise”, “The Boy Who Cried Wolf”, “The Ugly Duckling” and “The Emperor’s New Clothes”. However, if we examine these classic stories, we would find some contents of these stories not good for the development of children’s moral cognition. This research, first of all, reviewed some literatures on controversial moral issues within theses stories(such as evil stepmother, an eye for an eye, etc.). Then, by means of quasi-experimental design, the researcher selected two senior classes in separate kindergartens as the research participants, and employed dictation and discussion approaches of story-telling to these children respectively. The main findings are as follows: 1. The dictation group children had shown the cognitive characteristics of stereotype, egocentrism and expiatory punishments. 2. Through moral discussion, story rewriting and role-playing, the discussion group children had developed their cognition of concepts transformation, role taking and punishment by reciprocity. 3. After story teaching, the discussion group and the dictation group children’s development of moral cognition showed significant differences. The level of moral comprehension reasoning in the discussion group is apparently higher than in the narrative group; the children in the discussion group are more likely to explore questions with care. 4. The stories concerning laws are more likely to stimulate children’s high-level reasoning ability. 5. Discussion group is more likely to stimulate conversations about morality between teachers and student than the dictation group.