This study explores how sharing bilingual Balinese fable books in early childhood education settings can support early literacy and help develop important local character values in young children. The research was conducted in four PAUD (early childhood education) schools in the Kediri District of Tabanan, Bali, Indonesia. It involved eight teachers, eight children with their parents, and school principals. The researchers used classroom observations, in-depth interviews, and document analysis of the fable storybooks to collect data.The findings reveal that the book-sharing activity follows four clear stages: preparing the books, sharing them with children, telling the stories interactively, and engaging children in follow-up activities such as singing, playing, and colouring. Five Balinese fable storybooks were used in this program, including Siap Selem, I Lutung teken Kakua, Goat and Tiger, Honest Balinese Starling, and Angsa teken Empas. Through these stories, children were exposed to moral messages about honesty, kindness, responsibility, and creativity. Importantly, the study found that this activity helps instil eight character values in children: friendliness, peace-loving attitudes, hard work, creativity, honesty, respect for achievement, discipline, and tolerance. These values are essential for preserving Balinese cultural identity in the face of globalisation. The use of bilingual books—combining Balinese, Indonesian, and English—also helps children become familiar with multiple languages while staying connected to their local heritage. The study concludes that sharing bilingual Balinese fable books is an effective and meaningful way to promote early literacy and strengthen local character in early childhood education. The researchers recommend that more schools adopt this approach to help young children develop both language skills and strong moral foundations rooted in their own culture.