Fairytale refers to a type of short story that typically features folkloric fantasy characters, such as fairies, goblins, elves, trolls, dwarves, giants, witches, mermaids, or gnomes, and usually magic or enchantments.
The term "fairytale" can also mean:
1. An unrealistic or unlikely story
2. A happy ending like in fairy tales
3. Used to describe something that is charming and idealized
4. In sports, an underdog's unexpected success story