An archaic or literary term for an enchanted or magical realm; sometimes used in fantasy or fairy tale contexts.
From Middle English 'faerie' (Old French 'faerie' from Latin 'fata' meaning fates). This spelling variant preserves the medieval form closer to its French origins.
Feerie' is the spelling that appears in medieval literature—it shows how 'fairy' and 'faerie' are actually variants of the same word, both referring to magical realms and enchanted beings.
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