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Definition

Although the fairy tale is a distinct genre within the larger category of folktale, the definition that marks a work as a fairy tale is a source of considerable dispute. The term itself comes from the translation of Madame D'Aulnoy's Conte de fées, first used in her collection in 1697. Common parlance conflates fairy tales with beast fables and other folktales, and scholars differ on the degree to which the presence of fairies and/or similarly mythical beings (e.g., elves, goblins, trolls, giants, huge monsters, or mermaids) should be taken as a differentiator. Vladimir Propp, in his Morphology of the Folktale, criticized the common distinction between "fairy tales" and "animal tales" on the grounds that many tales contained both fantastic elements and animals. Nevertheless, to select works for his analysis, Propp used all Russian folktales classified as a folklore, Aarne–Thompson–Uther Index 300–749, — in a cataloguing system that made such a distinction — to gain a clear set of tales. His own analysis identified fairy tales by their plot elements, but that in itself has been criticized, as the analysis does not lend itself easily to tales that do not involve a quest, and furthermore, the same plot elements are found in non-fairy tale works.

Were I asked, what is a fairytale? I should reply, Read Undine: that is a fairytale... of all fairytales I know, I think Undine the most beautiful.

As Stith Thompson points out, talking animals and the presence of magic seem to be more common to the fairy tale than fairies themselves. However, the mere presence of animals that talk does not make a tale a fairy tale, especially when the animal is clearly a mask on a human face, as in fables.

In his essay " On Fairy-Stories ", J. R. R. Tolkien agreed with the exclusion of "fairies" from the definition, defining fairy tales as stories about the adventures of men in Faërie, the land of fairies, fairytale princes and princesses, dwarves, elves, and not only other magical species but many other marvels. However, the same essay excludes tales that are often considered fairy tales, citing as an example The Monkey's Heart, which Andrew Lang included in The Lilac Fairy Book.

Steven Swann Jones identified the presence of magic as the feature by which fairy tales can be distinguished from other sorts of folktales. Davidson and Chaudri identify "transformation" as the key feature of the genre. From a psychological point of view, Jean Chiriac argued for the necessity of the fantastic in these narratives.

In terms of aesthetic values, Italo Calvino cited the fairy tale as a prime example of "quickness" in literature, because of the economy and concision of the tales.