Through Grandma's Bag Of Stories, Sudha Murty recreates the traditional way of storytelling, where kids sit around a grandparent, while getting mesmerised by one interesting tale after another. As the book starts, the setting is that of summer, and a few children go on a holiday to their grandparents' home in Shiggaon, Karnataka. They proceed to do what children do best find someone to play with. They befriend the kids next door, and have loads of fun with them. From taking a fun picnic to visiting the weekly market, they enjoy every minute of their vacation.

But their favorite thing to do is listen to their grandmother's fantastic stories. Grandma's Bag Of Stories contains the stories that the grandmother narrates to entertain the seven young children. The tales are magical, and replete with captivating characters. Moral lessons are subtly blended in with the tales to impress the differences between what is right and what is wrong.The illustrations by Priya Kurian make the book more interesting and keep the young readers engrossed.

The stories feature several characters like a queen who discovers silk, a princess who is turned into an onion, a lazy man, an angry bear, cheats and kings, and mice and monkeys. The stories are based on the author's own childhood in Shiggaon, and the stories that she heard from her grandmother.