fable

Short definition from Wiktionary

Noun

1. 1
   A fictitious narrative intended to enforce some useful truth or precept, usually with animals, etc. as characters; an apologue. Prototypically, Aesop's Fables.
2. 2
   Any story told to excite wonder; common talk; the theme of talk.
3. 3
   Fiction; untruth; falsehood.
4. 4
   The plot, story, or connected series of events forming the subject of an epic or dramatic poem.

Verb

1. 1
   To compose fables; hence, to write or speak fiction; to write or utter what is not true.
2. 2
   To make up; to devise, and speak of, as true or real; to tell of falsely; to recount in the form of a fable.