Praise be to Allah.
There is no harm in joking by words and anecdotes, if they are truthful and real, especially if it is not done often. The Prophet (peace be upon him) used to joke but he would only speak the truth. If it is with lying, then it is not allowed. The Prophet (peace be upon him) said, "Woe to the one who speaks and tells a lie in order to make the people laugh at it. Woe to him. Then again, woe to him."
This was recorded by Abu Dawud, al-Tirmidhi and al-Nasal with a good chain.
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