Contemporary approaches to moral development and moral education emphasize propositional thinking and verbal discussion of abstract moral dilemmas. In contrast, this article proposes that narratives (stories) are a central factor in a person's moral development. Support for this position comes from recent theoretical contributions of Bruner, Sarbin, Spence, Tulving, and others, who have emphasized narrative thought as a major form of cognition that is qualitatively different from abstract propositional or scientific thinking. In addition, over the last 10 to 20 years psychologists investigating and conceptualizing moral development have come to emphasize such processes as empathy (Hoffman), caring and commitment (Gilligan), interpersonal interaction (Haan), personal character and personality (Coles; Hogan; Staub; Rushton). It is proposed that narratives and narrative thinking are especially involved in how these processes lead to moral development and therefore that narrative should be rehabilitated as a valuable part of moral education.