Etymology
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fable (n.)

c. 1300, "falsehood, fictitious narrative; a lie, pretense," from Old French fable "story, fable, tale; drama, play, fiction; lie, falsehood" (12c.), from Latin fabula "story, story with a lesson, tale, narrative, account; the common talk, news," literally "that which is told," from fari "speak, tell," from PIE root *bha- (2) "to speak, tell, say." Restricted sense of "animal story" (early 14c.) comes from Aesop. In modern folklore terms, defined as "a short, comic tale making a moral point about human nature, usually through animal characters behaving in human ways" ["Oxford Dictionary of English Folklore"].

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Definitions of fable

fable (n.)
a deliberately false or improbable account;
Synonyms: fabrication / fiction
fable (n.)
a short moral story (often with animal characters);
Synonyms: parable / allegory / apologue
fable (n.)
a story about mythical or supernatural beings or events;
Synonyms: legend
From wordnet.princeton.edu