Applying psychological theories in reading children's stories can bring new horizons to the audience and show the role of stories in improving the educational level of children. William Glaser's theory of choice is one of the new perspectives of psychology which with a realistic approach and with an emphasis on internal control, considers human behavior to be derived from his five internal needs. It means the need for survival, the need for love and belonging, the need for strength and progress, the need for freedom and the need for fun. Children identify with the characters in the story and try to imitate their behavior; therefore, the use of choice theory in the analysis of children's stories can discover new dimensions of the characters in the story and their behavior to satisfy their needs and provide the ground for writers to write in their works according to the needs of children and take an effective step in the direction of children's moral education. Therefore, in the current research, the authors try to answer the main question in a descriptive-analytical way and using the theory of choice, which of the basic needs of the mentioned theory has a more prominent appearance in the story "Princess of the Golden Palace" by Mohammad Atiya Al-Ibrashi and what behaviors do the characters of the story choose against their needs. The results of the research show that in this story, the need for love and belonging is the most obvious need that has been paid attention to and after that, the need for survival, the need for power and progress, the need for fun, and the need for freedom have a high frequency.