The Kancil (mousedeer) is a small and lovable creature found in the rainforests of Southeast Asia. Tales about this animal that tell of its ability to out-wit much stronger animals are popular in Malaysia, Indonesia, Brunei and Singapore. This positive image of the Kancil is an accepted educational model in the textbooks and juvenile readings of Malaysia. However, several scholars have pointed out that the Kancil has been known to be selfish, indifferent, cunning, deceitful and even violent and cruel. However, these characteristics have been widely interpreted as part of the "mischievous" nature of this creature. As Kancil stories are popular folktales, the negative traits of the creature are generally disregarded by mainstream literature or elitist culture, but are instead looked upon as make-believe, inconsequential, or impermanent. From the perspective of folk ethics, this paper aims to analyse the negative image of the Kancil in order to understand the narrative needs and intention of folktales as well as its ethical meanings to the grassroots. However, due to the vigilance of the "great tradition" over the exaggeration of deceit and violence in narration, these negative qualities have been "civilized" in official and elite circles. By exposing the coexistence of positive and marginal ethical values embedded in Kancil stories, we may better understand the meanings of these values to the lives and thoughts of the common people of Malaysia.