Der kleine Wassermann (The Little Water-Sprite) is frequently interpreted in the context of Otfried Preußler’s own childhood experiences amidst the romantically charged Bohemian landscape. This essay, however, examines Preußler’s debut children’s book through the eyes of young readers, rather than adhering to this conventional interpretation. It shows that Preußler employs intricate linguistic and narrative techniques to engage both the senses and the imagination of the child listener. Consequently, the essay presents a novel approach to the study of children’s literature, highlighting the importance of developmental psychology in understanding children’s literature and positioning Preußler’s work as a paragon of storytelling for young children.