His most famous fable is "The Lady, or the Tiger?" (1882), about a man sentenced to an unusual punishment for having a romance with a king's beloved daughter. Taken to the public arena, he is faced with two doors, behind one of which is a hungry tiger that will devour him. Behind the other is a beautiful lady-in-waiting, whom he will have to marry, if he finds her. While the crowd waits anxiously for his decision, he sees the princess among the spectators, who points him to the door on the right. The lover starts to open the door and ... the story ends abruptly there. Did the princess save her love by pointing to the door leading to the lady-in-waiting, or did she prefer to see her lover die rather than see him marry someone else? That discussion hook has made the story a staple in English classes in American schools, especially since Stockton was careful never to hint at what he thought the ending would be (according to Hiram Collins Haydn in The Thesaurus of Book Digests, ISBN 0-517-00122-5). He also wrote a sequel to the story, "The Discourager of Hesitancy".
In 1868, Stockton joined the staff of the new magazine Hearth and Home, working as an assistant editor under Mary Mapes Dodge, author of Hans Brinker, or the Silver Skates. He contributed not only fairy tales, but also stories and articles on a variety of subjects for adults. In 1874, Stockton was made assistant editor of Saint Nicholas Magazine, a new magazine for children, again under Mary Mapes Dodge. He worked there until 1878, when he was forced to resign the position due to failing eyesight. He continued to write, however, dictating to his wife or a professional secretary, and produced a large body of popular work for children and adults through the end of the century. He died of a cerebral hemorrhage in 1902. His collected works, 23 volumes of stories for adults and children, were published between 1899 and 1904.