This paper is written based on the previous research conducted at four senior high schools i.e. SMA Negeri 1 Labuapi, SMA Negeri 1 Praya, SMA Negeri 1 Selong, and SMA Negeri 1 Mataram from four different regencies in Lombok in order to see the extent to how students’ reception upon the Sasaknese folktale of Princess Mandalika really exists. The previous research was a case study which took 40 ten-grade students as respondents from the four as representatives of all Sasaknese young generation. The discussion of this paper uses a qualitative method using field data which were taken through questionnaire and direct interview with students and teachers in the schools. This study used theory of aesthetic reception or reader’s response theory. It is found that there are delight facts related to the majority of respondents knowing that it is an original story of Sasaknesse people and about a princess who change to “nyale” (sea worm). However, as the sad fact, they mostly think that Princess Mandalika’s story is a true story and they do not know the details of the story. The result of this study shows local literature as material learning is less studied and still not interesting. Therefore, this paper will be a main reference to government and other authorities to develop a new strategy in teaching local literature especially the folktale of Princess Mandalika since this material becomes an effective medium to maintain national identity and culture.