Most dragons have shied away from humanity for many, many years to the point where most humans believe dragons are only legend. Fairytale Dragons are no different... but due to their bulky frame and habitats close to small towns, they'll occasionally be spotted by adventurous, wide-eyed children out in the woods.
To the untrained eye, Fairytale Dragons seem quite fantastical indeed. Awestruck children who come across these dragons didn't recognize them as dragons at all, but rather giant, flying caterpillars. Some children follow them around hoping to find their cocoon; none are successful. Yet the dragons make an impression on these children; children see these magical beasts and assume they're from a fairy tale, earning them their name.
Like many dragons, Fairytale Dragons can breathe fire. However, instead of fiery breaths, they like to keep their fire inside their lungs and blow out stylish smoke rings. Humans spying this phenomena occur assume Fairytale Dragons aren't breathing fire but rather believe they are smoking. Little do they know Fairytale Dragons are very health conscious.
Don't listen to the old Dragon Mother tales: Epic Fairytale Dragons do not evolve into Butterfly Dragons. They do look like they'd love to cozy up inside a cocoon though. Epic Fairytale Dragons are enormous; their bodies look large and lumpy, barely kept in the air by thin but beautiful wings. The novelty of their body shape and size is enough to make even the most skeptical caretakers begin believing in fairy tales.