Simple Summary: In this paper, we perform a critical re-reading of selected animal-related folklore texts and, applying Hubert Zapf's concept of imaginative counter-discourse, consider the potential of imagination as a methodological tool in the transformative program of zoofolkloristics. Nonhuman animal protagonists of folklore texts in the European space have tended to be perceived primarily as performing a symbolic and metaphoric function. But behind the symbols and the metaphors hide real flesh-and-blood nonhuman animals, and flesh-and-blood humans interacting with them, mostly from a position of power. The emerging discipline of zoofolkloristics considers nonhuman animals in their own right. Through critical analysis of folklore material, zoofolkloristics examines the role of animals and power relations within the interspecies entanglement with the aim of deconstructing the oppressive system and establishing multispecies justice. We begin this paper with a brief reflection on the 'historical animal' as an embodied being and a human construct. We then perform a critical re-reading of three animal-related folklore texts from the Slovenian tradition and, applying Hubert Zapf's concept of imaginative counter-discourse, consider the potential of imagination as a methodological tool in the transformative program of zoofolkloristics. Implications for animal ethics, liberation, and conservation are also discussed. [ABSTRACT FROM AUTHOR]