The term fairy tale mostly relates to older European stories that focus on children's themes.
What was your favorite fairy tale grown up ? Fairy tales do have such a rich history, probably dating back to centuries lol
My favorite was probably Jack and the Beanstalk, where magic is present. What are some of yours?
Hansel and Gretel is among one of mine.  You have to have quite the imagination to write a fairy tale !
Colloquially, the term "fairy tale" or "fairy story" can also mean any far-fetched story or tall tale; it is used especially of any story that not only is not true, but could not possibly be true. Legends are perceived as real; fairy tales may merge into legends, where the narrative is perceived both by teller and hearers as being grounded in historical truth. However, unlike legends and epics, fairy tales usually do not contain more than superficial references to religion and to actual places,
tales may be distinguished from other folk narratives such as legends (which generally involve belief in the veracity of the events described) and explicit moral tales, including beast fables. The term is mainly used for stories with origins in European tradition and, at least in recent centuries, mostly relates to children's literature.
In less technical contexts, the term is also used to describe something blessed with unusual happiness, as in "fairy-tale ending" (a happy ending) or "fairy-tale romance".