On the island of Cyprus, believed to be the birthplace of Aphrodite, the Muslim minority (settled there following the Ottoman conquest of the island in 1571) and Orthodox Christians (the native majority) lived together in peace for hundreds of years. However, as a result of ethnic conflict in the late 1950s, the Muslim Cypriot Turks established their own political state in the north of the island in 1974, and Cyprus was divided into northern Turkish and southern Greek sections. This paper attempts to examine historical, religious, cultural and psychological aspects of the relationship between these two large groups, prior to recent conflicts, by studying fairy tales told by Turkish Cypriots about a hundred years ago. It is hoped that this paper will encourage similar studies of other communities where different large-group identities live side by side, and that such studies may support their peaceful co-existence.