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A fairy tale is a fictional story that may feature folkloric characters such as fairies, goblins, elves, trolls, giants, and talking animals, and usually enchantments, often involving a far-fetched sequence of events that usually ended in tragedy, in today's child fairy tales are made so they won't frighten a child or have such tragic endings. In modern-day parlance, the term is also used to describe something blessed with princesses, as in "fairy tale ending" (a happy ending) or "fairy tale romance", though not all fairy tales end happily. Colloquially, a "fairy tale" or "fairy story" can also mean any far-fetched story. Fairy tales commonly attract young children since they easily understand the archetypal characters in the story.

In cultures where demons and witches are perceived as real, fairy tales may merge into legendary narratives, where the context is perceived by teller and hearers as having historical actuality. However, unlike legends and epics they usually do not contain more than superficial references to religion and actual places, persons, and events; they take place once upon a time rather than in actual times.

Fairy tales are found in oral folktales and in literary form. The history of the fairy tale is particularly difficult to trace, because only the literary forms can survive. Still, the evidence of literary works at least indicates that fairy tales have existed for thousands of years, although not perhaps recognized as a genre; the name "fairy tale" was first ascribed to them by Madame d'Aulnoy. Literary fairy tales are found over the centuries all over the world, and when they collected them, folklorists found fairy tales in every culture. Fairy tales, and works derived from fairy tales, are still written today.