Children’s literature is a very important tool to educate and build the character of our children. Through stories and poems we can introduce social values like peace, friendship, love, respect and justice. These are a great resource we can use to teach our children humanism and appropriate social behavior and help them cope with situations like moving or bullying. Books for kids have the amazing power to inculcate principles like, using good manners, civic duties and religious rituals. This literature can go a long way in teaching kids moral education. Now is the era of information technology and use of it is necessary evil. IT has both positive and negative aspects, so by developing the habit of book reading we can save our children from negative aspect of IT. This article will illustrate the importance of Children’s Urdu Literature and will explain how it helps to shape and build our children’s character and makes them wonderful human beings.