This paper discusses “The Contribution of Cagayan Folktale for a Contextualized Literaure Curriculum”. It uses Focus group discussion among the group of young people and senior citizens (elderly people) as well as guided interview with the key informants. Through thematic and archetypal approach, the icons Sirena and Apo Baket display resilience, loving attitude, and fierce of the Cagayano people; manifesting their authentic culture and psyche. The people’s stories inspire the creation of a folktale which is a significant tool in creating a contextualized curriculum which is culture-based; for there lays in our folktales the genius of the people. Schools and communities, with the huge help from the local and national government, must promote and develop the designed exemplar for cultural awareness of culture-based education, leading to social development and sustainability.