A short folk tale or folk-like tale with elements of the fantastic and supernatural, romance (often involving royalty and/or fantastic beings and/or pastoral life), adventure, and a (generally) happy ending. Fashionable during the 18th century in France and in the 19th century in England and Germany for adults, most fairy tales have been rewritten during the 20th century for children. Many authors have turned their hands to this genre, which is surprisingly difficult: a fairy tale, to be truly satisfying, must tread a thin ground between pastoral/court life and religious myth, without relying too much on either.

The best collections are known as the Lang Rainbow Books (The Red Fairy Book, Blue, Yellow, etc.) which number about a dozen and are illustrated by Arthur Rackham. Other great compendia include "The Juniper Tree", Hans Christian Anderson's stories, and "East of the Sun, West of the Moon".