The present invention relates to a story telling toy and operating method thereof, RFID tag is mounted to a doll and the story telling toy outputs a story of the relevant doll as a voice or image, and a history of the story is stored and the story is output in accordance with a state of the story telling history when the next operation. The present invention provides a story telling toy outputting a story in accordance with the story telling history, comprising: an RFID reader for reading a unique code from an RFID tag mounted to an RFID toy; a storage unit for storing a story related to each RFID doll a history storage unit for storing a story telling history state; an output unit; and a control unit for outputting the read story in accordance with a story telling history state stored in the history storage unit.