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Fairies resemble various beings of other mythologies, though even folklore that uses the term fairy offers many definitions. Sometimes the term describes any magical creature, including goblins or gnomes: at other times, the term only describes a specific type of more ethereal creature.

Fairies are generally described as human in appearance and having magical powers. Their origins are less clear in the folklore, being variously dead, or some form of demon, or a species completely independent of humans or angels. Folklorists have suggested that their actual origin lies in a conquered race living in hiding, or in religious beliefs that lost currency with the advent of Christianity. These explanations are not necessarily incompatible, and they may be traceable to multiple sources.

 Although in modern culture they are often depicted as young, sometimes winged, humanoids of small stature, they originally were depicted much differently: tall, radiant, angelic beings or short, wizened trolls being some of the commonly mentioned. Diminutive fairies of one kind or another have been recorded for centuries, but occur alongside the human-sized beings; these have been depicted as ranging in size from very tiny up to the size of a human child. Even with these small fairies, however, their small size may be magically assumed rather than constant.

Various animals have also been described as fairies. Sometimes this is the result of shape shifting on part of the fairy, as in the case of the selkie (seal people); others, like the kelpie and various black dogs, appear to stay more constant in form. In some folklore Fey have green eyes and often bite. Though they can confuse one with their words, fairies cannot lie. They hate being told 'thank you', as they see it as a sign as one forgetting the good deed done, and want something that'll guarantee remembrance.

 A less-common belief was that the fairies were actually humans; one folktale recounts how a woman had hidden some of her children from God, and then looked for them in vain, because they had become the hidden people, the fairies. This is parallel to a more developed tale, of the origin of the Scandinavian huldra.

When considered as beings that a person might actually encounter, fairies were noted for their mischief and malice. Some pranks ascribed to them, such as tangling the hair of sleepers into "Elf-locks", stealing small items or leading a traveler astray, are generally harmless. But far more dangerous behaviors were also attributed to fairies. Any form of sudden death might stem from a fairy kidnapping, with the apparent corpse being a wooden stand-in with the appearance of the kidnapped person