This study analyzed picture book “Rainbow Fish” from transactional analysis standpoint to provide primary data to conflict resolution program. More in specific, it focused on two main aspects of Transactional Analysis: the structure and the concept of ego-state and the Transaction Pattern, to analyze the “Rainbow Fish” infant picture book. From the analysis, the entire process of ‘Peer conflict’ from its inception to resolution was found in the book and during which we could observe the use of the comprehensive ego-states: the parent ego-state, adult ego-state, and the child ego-state. Effectively, it is considered that the adult ego- state played a vital role in resolving the conflict. Conflict was observed with crossed transaction and it could come to a settlement of conflict through complementary transaction. In this book, both A ego(Adult ego-state) and NP ego(Nurturing Parent ego-state) were described as a helper to resolve the conflict, and we could see the comprehensive ego-state helps one to express its feeling truthfully. Based on the analysis, by utilizing fairy tales to interact with children, we could anticipate the prospect of developing conflict resolution program in the basis of Transactional Analysis theory.