Ultracool dwarfs with spectral type M7 and later include very low-mass stars as well as brown dwarfs. Due to their intrinsic faintness, only 9 very low-mass dwarfs are actually being monitored by the Kepler mission. We present light curves for some of these dwarfs that show rotational modulation due to cool spots on the surface and flare outbursts. 32 additional late-M and L dwarfs have been identified by us in the Kepler field and we have proposed to observe them during Kepler GO Cycle 4. We have selected these additional dwarfs using multi-wavelength photometric data as well as low-resolution spectroscopy for a subset of them. The unique combination of high photometric accuracy and continuous light-curves provided by Kepler can be used to address the following scientific goals: (1) Determination of surface rotational periods for very low-mass stars and brown dwarfs. (2) Characterization of the properties of surface temperature inhomogeneities and their evolution from analysis of continuous light curves of very cool dwarfs. The inhomogeneities in our targets can be due to two kind of features; cool magnetic spots or cloud decks where dust grains are expected to condense. (3) Identification of very low-mass eclipsing binaries. So far no eclipsing binaries have been detected with spectral type later than M6. (4) Characterization of the habitable environment around very low-mass central objects. The habitable regions around late-M and L dwarfs are thought to be tightly wrapped around the central objects. The rate of flare events observed in Halpha emission has been observed to increase toward the late-M spectral types with a peak around M8 and a decrease for later types. However, continuous observations of flare events for timescales of weeks and months in these late spectral type objects are sorely missing.