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Tales, myths, sagas and other narratives comprise perhaps the most interesting part of the literature named "Folklore", a term coined in 1846 by W.J. Thomas to designate the traditional learning of the uncultured classes of civilized nations. Folktales comprise a respectable volume of literature in all languages which is being explored with increasing interest everywhere. The earliest tales of this kind are traced to about 2800 B.C. in Egypt. By and large, however, the tales portray a large variety of men and women, both individuals and types, and project peoples' beliefs, customs, ideals, preferences and prejudices in all their rich variety as few other literary forms can do. As a matter of fact they impart meaning and substance to culture as it is crystallized in our day-to-day living. In this sense they are allied to myths. This paper will highlight the Kashmiri Folklore with historical perspective and how kashmiri folklores have been represented in Kashmiri Literature. Moreover this paper will discuss the two most famous folklores viz a viz, “The tale of Aknandun” and “The birth of the Lake Sheeshnag” in detail.