Characters or themes from the fables of our youth commonly appear in dreams as archetypes of personality traits or prevalent situations. Normally, the subconscious tries to illustrate a key that will help you develop those traits, overcome negative habits, or succeed in your present circumstances.
For example, the tale of Goldilocks and the Three Bears could be counseling you to be less selfish or bearish in the way you act toward strangers.
The hero or heroine reflects your Higher Self, and the best personal characteristics you hope to eventually develop. Pay close attention to what these people do (See also: Icons, Men, Women).
Kings and queens reflect authority figures (or situations, belief systems, etc.) to whom you subjugate yourself.
The question here is whether such service is beneficial to you as a whole person. Alternatively, these can be icons of gods and goddesses.
Fantastic creatures represent your ability to imagine and reach beyond surface reality. Each creature also has a unique symbolic message to consider.
For example, dreaming of a Lilliputian might indicate that you feel very “small” about something right now, or that you lack self-confidence. [1]
To dream you are living a fable may mean that you are pretending too much and you should face the truth, or it may mean you have an inner wish to escape a situation you find uncomfortable in your daily life. [2]
To the young, it signifies romantic attachments.
To hear, or tell, religious fables, denotes that the dreamer will become very devotional. [3]