fable — a short tale to teach a moral lesson, often with animals or inanimate objects as characters; apologue: the fable of the tortoise and the hare; Aesop's fables.
myth — a traditional or legendary story, usually concerning some being or hero or event, with or without a determinable basis of fact or a natural explanation, especially one that is concerned with deities or demigods and explains some practice, rite, or phenomenon of nature.
tale — a narrative that relates the details of some real or imaginary event, incident, or case; story: a tale about Lincoln's dog.
yarn — thread made of natural or synthetic fibers and used for knitting and weaving.
ghost story — a tale in which such elements as ghostly visitations and supernatural intervention are used to further the plot and a chilling, suspenseful atmosphere.