A fairy story is a type of narrative that typically features mythical creatures such as fairies, goblins, elves, trolls, giants, and talking animals. It usually takes place in a fantasy world and often involves magic or other supernatural elements. The two crossword solutions for the term 'fairy story' are 'LIE' (3 letters) and 'TALE' (4 letters). A LIE is an untruthful statement, while a TALE is a story or narrative. Therefore, a fairy story can be described as a false narrative or a fictitious story.