Jabir ibn Samurah radiyallahu anhu says, I attended the assemblies of Rasoolullah sallallahu alaihe wasallam more than a hundred times, wherein the Sahaabah radiyallahu anhum recited poetry and related stories of the Jaahiliyyah (pre-Islamic era). Rasoolullah sallallahu alaihe wasallam silently listened to them (and did not forbid them). At times he smiled with them
English reference: Book 36, Hadith 236
Arabic reference: Book 37, Hadith 247