“Fairy tales are more than true; not because they tell us that dragons exist, but because they tell us that dragons can be beaten.”
This is the beauty of fantasy. In a world that we make up in our heads, there can be any amount of terrifying dragons and beasts and ghosts. But good fantasy contains a story where such horrors are overcome. It shows dragons being overthrown by knights in armor and monsters being defeated by the army of light. This is what makes a fairy tale a true story, even if it has been made up, because it points to that greater true story of the Lamb of God who came to earth and crushed death.