These words all denote imaginary creatures of folklore, especially European folklore, who are human in form but have no souls. They are usually invisible and are capable of working either good or evil magic against mankind. Sprite , which is derived from the same source as "spirit," is much a creature who is ethereal or disembodied and who lives in the air rather than on the earth, as Ariel of Shakespeare’s Tempest .

Fairy is the most generalized term for these beings. In the narrow sense, a fairy is thought of as diminutive, graceful and fair of face, but able to assume other shapes at will. Fairies may sometimes be masculine, but are more usually feminine. They inhabit woods, forests and fields, but maintain a close relationship with human beings towards whom they act in both an annoying or friendly fashion. Nowadays, the word has become a pejorative slang term to describe those male homosexuals thought to be effeminate or fey in manner or appearance.

Elf is the word in English for the fairy of Teutonic folklore. Elves are popularly pictured as tiny, childlike beings with pointed ears, who are comical or quaint in appearance rather than delicate and beautiful. El f suggests more of the spirit of playfulness and mischief than does fairy .

A gnome is one of a group of dwarfish fairies typically resembling little old men with beards. They live underground in caves to guard buried treasure or mines containing precious metals. Gnomes are often skilled artisans able to fashion magical weapons and armour.

Goblin suggests a misshapen elf of repulsive appearance who is always conceived of as being malevolent towards human beings. A night creature, he is the companion of witches and the Devil.

Hobgoblin is another word for goblin , although the hobgoblin is more often thought of as being annoying or impish in his behaviour towards people rather than evil. By extension, hobgoblin has come to mean anything that elicits unfounded and unreasonable dread: closed-in spaces are his hobgoblins .

A gremlin is a strictly modern fairy or gnome who is a trouble-maker. The term applies especially to a supernatural being who is blamed by pilots for virtually anything that can go unexpectedly and violently wrong with or in an aircraft. It is said that gremlin was coined after the beginning of World War II by an R.A.F. squadron-leader. The word has had wide currency in Australia and New Zealand.