This Little Chick by John Lawrence tells the adventures of a wacky little chick who would rather speak the languages of the other barnyard animals than that of his family. The woodblock print illustrations are just fantastic, and my children laughed at the chick's antics. Ages 18 mo - 5 years.
A Book of Sleep by Il Sung Na has to be one of the most dreamily illustrated boardbooks I've ever seen. A wakeful owl watches over sleepy animals of all types until day arrives. The language is simple and lulling, and the pictures are filled with fanciful whorls and flowers and vines faintly sketched against the blocks of color. My favorite illustrations are those of the giraffe using the cloud as a pillow and the penguins huddled together. Perfect for ages 18 mo through 4 years.
The next Jewish holiday, a month and a half away, will be Chanukah. Here's a fun story to celebrate the holiday:
Asher and the Capmakers by Eric Kimmel isn't precisely a folktale. This is a whimsical, darkly humorous story--about the mysterious adventure a boy has when he runs to the neighbor to borrow an egg for the family's latkes--created by interweaving folktales from many traditions. I'd recommend this one for children 5 to 10 years old. It's a little scary for the youngest readers. Also, some families might be uncomfortable with the mention of fairies and their magical caps.