The objectives of this research were to investigate (1) the intrinsic elements of children stories entitled Tarian Persahabatan Kupu-Kupu, Kebaikan Gagah Gajah, and Kibo Kelinci Kena Batunya, (2) the moral values in those children stories, (3) the relevance of the moral values in children stories for literature learning in elementary schools, and (4) the benefits of children stories in the learning process. The data were collected through reading, note-taking, and interview methods. Based on the analysis of the data, it was revealed the following findings. (1) The intrinsic elements in children stories entitled Tarian Persahabatan Kupu-Kupu, Kebaikan Gagah Gajah, and Kibo Kelinci Kena Batunya covered characters/characterization, plots, settings, themes, and moral values. (2) The moral values in children stories written by Heru Kurniawan consisted of 8 data namely (a) Tarian Persahabatan Kupu-Kupu which consisted of 2 criteria: 2 data of lessons not to be arrogant and mocking friends and 2 data of lessons to ask for and give apologies to friends, (b) Kebaikan Gagah Gajah which consisted of 1 datum, which was sympathy given to people in grieve, and (c) Kibo Kelinci Kena Batunya which consisted of 5 criteria: 1 datum of a lesson not to be arrogant, 2 data of a lesson not to be lazy, 1 datum of a lesson not to downgrade others, 1 datum of a lesson to cooperate with others, and 2 data of a lesson to work hard. (3) The relevance of moral values in children stories for literature learning in elementary schools as part of the effort to form students character covered the learning process in elementary schools and the content of the character education values. (4) The benefits of children stories in learning literature were functioning as (a) varied literature learning media, (b) media of learning literature in elementary schools, (c) fun learning media, and (d) a congruity with Basic Competencies in Bahasa Indonesia subject.