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any literary work portraying imaginary characters and events, as a novel, play, etc.
Fiction is any kind of story that is imaginary. Science fiction and historical fiction are two categories that come to mind.
The Children's Literature and Language Arts
Classics for Young People
Folklore, Myth and Legend
Stories from the Grimm Brothers
Winnie the Pooh
MIT Science Fiction Society Homepage
The Little Red Riding Hood
ProjectLaura Ingalls Wilder Home Page