Based on Vlaimir Propp and the theoretical basis of the social construction of reality, this study analyzes as well as examines the story structure of Taiwan fairytale. What the main concerns of this study are as follow: First, the fairytale structure in Taiwan. Second, the conjunction between story structure and social context. Third, how fairytale acts as social function. The result shows Taiwanese fairytale story reflects the ideology of/behind the whole social context. Briefly, by means of fairytale, social values, rules and ideology can educate, domesticate children to obey/ comply with society imperceptibly. Forming the fixed model of thinking (from generation to generation) makes / has the intention to make the system of society stable.