I've always been fascinated with fairy lore, ever since early childhood, and to this day.  Here's an article I take the liberty of sharing that beautifully explores some of the origins of the Fey.  All I might add is that I also believe the Fairies, like the Katchinas, or the Numina, are also ancient personifications in myth of  the nature spirits, the spirits of place, the Devas or elemental creators.  
The Fairy Faith: An ancient indigenous European Religion
There are two different meanings to the term “Fairy Faith.” On one 
hand, it simply refers to the old folkloric belief in fairies, and the 
practices found therein.  This meaning is usually ascribed to the modern
 Celtic nations of Ireland and Scotland, where belief in fairies 
lingered long into the modern era. In this sense, it is analogous to 
other places where belief in fairy-like creatures continued even into 
the present day, such as in Iceland and even in some Native American or 
Canadian First Nations traditions.
The second meaning is found in the modern neo-pagan community. It 
seems that the neo-pagan Fairy Faith sprung from the Wiccan community 
somewhere around the 1970s in California. As the modern pagan movement 
proliferated, many different paths developed. Some were divergent 
variants branching off of Wicca, while others were born in the 
reconstructionist movement (reconstructionist meaning attempts to 
reconstruct the ancient indigenous religions of Europe, the 
Mediterranean, and elsewhere, with historical accuracy). Yet more 
versions of neo-pagan paths emerged that were influenced by these, but 
took their own shape and form. So in the modern pagan community, the 
Fairy Faith has various incarnations and meanings. This article will 
focus mainly on the first definition, but will touch lightly on the 
second.
Origins of Fairy Belief
The modern notion of fairy vastly different from that which our 
ancestors knew, and even antiquated descriptions vary widely. While it’s
 fair to say that the image of the fairy has changed a number of times, 
it’s origins sprang from the murky haze of the Neolithic period.
In those times, ancestor worship was a common feature among Indo-European groups. Both the Celtic 
Sidhe as well as the Germanic 
Alfar
 were originally both associated with burial mounds, and therefore 
appear to have derived from ancestor worship. Human remains, and 
especially highly revered ancestors such as tribal leaders, chieftains, 
and great warriors were interred in mounds.  A chieftain or hero of the 
tribe would have been considered a tribal ancestor to everyone within 
the tribe, especially as tribes were built around the structure of 
kinship. Some scholars speculate that one possible origin of indigenous 
European deities are persons of renown whose legends grew as they 
continued to be remembered and honored by subsequent generations. The 
word 
sidhe originally meant the mound itself, but eventually came to mean the spirits who dwelt therein. And
, alfar is the Norse word from which the modern English word 
“elf” derives.
Spirits of the mound are one direct foundation of elf and fairy 
belief. But, the connection may have also come about indirectly by the 
demotion of pagan gods during the conversion to Christianity. It has 
been noted that belief in “small spirits” continued on in folk belief 
for hundreds, and in some cases even a millennia, after conversion. The 
epic gods may have been diminished into smaller spirits of the land. By 
small, I don’t necessarily mean stature. But their power and roles were 
lesser than the mighty and central role that the great gods once played.
 For example, the Irish gods of the 
Tuatha De Danann were later associated with fairy lore.
Even into the modern era, fairies continued to be associated with the
 dead. In fact, some folklorists have noted that in folk accounts, there
 isn’t a clear differentiation between ghosts and fairies (Spence, 87). 
 The Otherworld inhabited by fairies was often associated with the land 
of the dead, and spirits of dead relatives and ancestors were often said
 to be existing in the land of the fairies.
Some folklorists speculate that the notion of fairies could be a 
cultural memory of the original inhabitants of Britain before they were 
pushed aside by the incoming Celts. These people may have been smaller 
in stature, and took to hiding in the forests and mounds as their 
numbers because increasingly less. They may have engaged in guerrilla 
war-like tactics as they became ever more adept at disappearing into 
their wooded environment. Because they had less resources than the 
Celts, the idea of the indigenous people swapping their sickly infant 
and stealing a healthy one from his cradle is one hypothesis for 
changeling tales.
So we can see that there are numerous influences and hypotheses for 
the origins of fairy lore. To complicate things, the term fairy would 
later be used to describe all manner of otherworldly spirit. There are 
tales of demon or ghost dogs, for example, that are described as fairy. 
The word “fairy” itself is a departure from the early notions of 
sidhe and 
alfar ancestor spirits. It comes from 
fatae, meaning the Fates from classical mythology. 
Fatae evolved into the noun 
fay. Those who wielded the power of the 
fay could bring about a state of enchantment called 
fay-erie, which developed into the modern 
fairy
 (Briggs, 131). So, we can see that in the modern English speaking 
world, the concept of fairy has numerous foundations, notwithstanding 
the fact that most cultures worldwide contain their own unique beliefs 
about fairy-like beings.
As Christianity arose in Celtic and Anglo Britain, the indigenous 
fairy beliefs were grafted into the Christian lexicon, altering beliefs 
further. Not only did powerful deities of mythology become shrunken into
 fairy lore, but ideas about fairies changed to fit the Christian 
paradigm.  Instead of being spirits connected to Earth-centered 
spirituality, it began to be said that fairies were the fallen angels. 
Another story is that they were angels who had refused to take a side 
during Lucifer’s revolt, so they were damned to exist between heaven and
 hell for eternity.

Because the Judeo-Christian pantheon has only God (as trinity), 
Satan, angels, demons, the Virgin Mary, and the saints, these 
extra-biblical indigenous spirits had to be made to fit a biblical 
context. Thus, they were relegated as demons by Church leaders. And 
while this may sound very medieval, later Protestant Reformation writers
 were especially forceful in their condemnation of fairies as demons. 
 People found to be interacting with fairies could be charged with 
witchcraft.
 In fact, fairies feature prominently in Scottish witch trial
 records and were discussed in detail in leading demonology texts 
written during the witch hunt era (for more on this, see “When Witches 
Communed with Fairies” in Celtic Guide, Volume 2, Issue 10, October 
2013).
Fairies and Faith
The image of the sweet little pixie with butterfly wings comes 
strictly from the Victorian Era.  In folklore, fairies have many 
different descriptions. Spirits who live closely with humans, such as 
domestic elves, tend to look like little old men dressed in antiquated 
clothing. This likely connects to the 
alfar’s evolution from an 
ancestor spirit as described above. In an age when property was handed 
down through the generation, it was believed that the original owner of 
the homestead lingered on as guardian. The propitiation of domestic 
spirits was common all across Europe, as well as elsewhere in the world.
 Due to early Christianization of Celtic lands, domestic spirits are not
 as common in Celtic folklore as elsewhere – except for in Scotland. 
 This is due to the heavy (but sadly overlooked) Germanic heritage in 
Scotland. The brownies of Scotland fit snugly into the house-elf 
tradition seen elsewhere in Germanic culture.
Another change in the modern view of fairies is their role as 
benevolent and spritely elemental spirits. While these supernatural 
beings were long associated with nature, it was often in a frightful 
way. Far from the gentle winged fairy, we might have the gargantuan 
leshy, guardian of the forests in Russian folklore. 
Leshy is thought to be a cousin of the Celtic 
green man,
 another ancient guardian of the forest. Forest spirits were known to be
 wily. They might lead the careless wanderer off their path and then 
disappear leaving only their echoing laughter as the traveler finds 
himself lost in the wilderness.  Likewise, water spirits might seduce a 
young fisherman only to pull him to his death beneath the waves.
Just as fairies evolved into innocuous, playful sprites in modern 
times, they also went through transformations in the past. It seems that
 every major age in civilization brings with it a change in fairy 
belief. From ancestor mound spirits in the Neolithic, to more advanced 
and god-like notions in the Bronze and Iron Ages, and then another 
change when Christianity swept through Europe. Great and powerful 
spirits were relegated to smaller realms. And, good or neutral spirits 
became seen as strictly demonic.
We tend to view fairies, and the like, as not only innocuous, but 
fairly silly. Those who profess to believe in them today are laughed at 
by mainstream culture; derided as not only misguided, but even 
dim-witted. Yet, from the beginning of Europe’s conversion to 
Christianity, which began in the 7th century in England (13th century in
 the Baltic, elsewhere in between) up through the Early Modern Era 
(circa the 16th and 17th centuries), belief in fairies was quite 
dangerous. The Church (both Catholic and Protestant) recognized fairy 
belief as a vestige of pagan religion, which therefore made it a threat 
to Christianity’s control over the peasantry. And, during the turbulent 
years of The Reformation, fairy belief could get an individual accused 
of witchcraft.
An excellent book on this is 
European Mythology by Jacqueline 
Simpson. Rather than focusing on the great gods of classic mythology, 
this book focuses on fairies and folk tradition. She explains that there
 is a huge difference between fairy belief found in folklore and the 
other genre that often gets lumped together with it; fairytales. Simpson
 says that fairytales are told mainly for entertainment, while folklore 
“is concerned with supernatural forces as real entities, to be reckoned 
with in the everyday world, and not just as material for entertaining…” 
(Simpson, p8). These supernatural beliefs were part of the “folk 
religion” of the common people. Folk religion is the corpus of beliefs 
held by masses, which usually combines the formalized religion of the 
elite (typically Christianity in the West and lands colonized by the 
West, but also seen with other major world religions in other parts of 
the world) with the indigenous beliefs of the people. This phenomenon is
 also called “popular religion.” Another scholar who has studied the 
merging of pagan and Christian beliefs in Britain is Karen Louise Jolly.
 She explains:
Popular religion, as one facet of a 
larger, complex culture, consists of those beliefs and practices common 
to the majority of believers. This popular religion encompasses the 
whole of Christianity, including the formal aspects of religion as well 
as the general religious experience of daily life. These popular 
practices include rituals marking the cycles of life (birth, marriage, 
death) or combatting the mysterious (illness and danger) or asserting 
spiritual security (the afterlife). Popular belief was reflected in 
those rituals and in other symbols exhibited in society, such as 
paintings, shrines, and relics” (Jolly, 9).
So, popular religion did not imply that the people held a notion of 
self-identity as being pagan. They considered themselves strictly 
Christian. But, many of their beliefs, traditions, and practices 
retained elements of ancient pagan spirituality mixed with Christianity.
 And, a large part of that in Britain, and elsewhere, hinged on the 
belief in fairy spirits.
Spiritual Practices
As noted in the above quote, popular religion was expressed in the 
folk practices of the people. One practice found all over Europe that 
demonstrates the religious nature of fairy belief is the act of making 
offerings.  Offerings are made to deities in many world religions 
through the ages to today. Even in Christianity, Jesus is called “the 
sacrificial lamb” and his act of dying on the cross is supposed to 
replace the Jewish practice of animal sacrifice. Animal sacrifice also 
occurs today in Islam, as well as other religions.
The kinds of sacrifices traditionally given to propitiate fairy 
spirits are more akin to offerings found in some Eastern faiths, such as
 Hinduism or Buddhism today. Rather than slaughtering an animal for 
blood sacrifice, offerings given to the fae are typically in the form of
 food and drink, with grains and dairy featuring prominantly. This is 
true for both domestic and certain types of nature spirits.
French scholar Claude Lecouteux studied folk practices related to 
domestic spirits (such as brownies and other house elves) from all 
around Europe for his book 
The Tradition of Household Spirits. He states:
In all these rites, what stands out is
 that the domestic spirit receives a portion of the household’s food as 
an offering. It is regarded as a family member and treated as such. It 
has a marked preference for dairy products, a feature it shares with 
fairies who often perform the same duties as it does, even if they do 
not remain in the house and only stop there during Twelve Days or other 
dates (Ember Days, All Saints’ Day, and so on). (Lecouteux, p146).
(As an aside, note the similarity between what is described by 
Lecouteux and our modern day custom of leaving cookies and milk out for 
Santa Claus, that “jolly old elf.” We are not as separated from our 
ancient customs as we might think!)
Offerings were not restricted only to domestic spirits, but also given to fairies residing in nature as well. In her book, 
Spirits, Fairies, Leprechauns, and Goblins: An Encyclopedia,
 scholar Carol Rose mentions that salt and bread are traditional 
offerings given to the Russian forest guardian, the Leshy (Rose, p197). 
And, lest we assume that a Slavic custom has no bearing on beliefs and 
practices of the Celtic and Germanic people, Jacqueline Simpson reminds 
us that:
[Folk tradition]is ‘European’ because 
its main features are pretty consistent throughout Europe, despite 
political and linguistic barriers; the range of activities ascribed to 
fairies, for instance, remains much the same everywhere, whatever names 
they are known by (Simpson, p8).
This is not to say that all European cultures are identical. But, 
simply that they are related and share many characteristics, especially 
as it pertains to folk tradition.
Offerings could take form other than food, especially when given to 
nature spirits. Coins are a common offering to water deities and 
fairies. You have probably given this offering yourself, throwing a coin
 into a wishing well.  Pagan belief carried a heavy dose of “you scratch
 my back and I’ll scratch yours.” If you desire to receive something 
from a spirit, i.e. make a wish, then you must give it something in 
return. And, so, we still toss coins into wishing wells for the water 
fairies in return for wishes granted today. Ribbons and pieces of cloth 
strewn about the branches of trees are another such custom that 
continues clear across Britain today.
Fairy Faith Today
The Fairy Faith lives on today, even if it is not recognized among 
world religions. Many of us engage in certain behaviors without even 
realizing we are acting out an ancient pagan fairy rite, such as leaving
 out a food offering for Santa or tossing coins to a water well goddess.
  Folklore lives on in many remote corners of Europe, where people still
 insist that they have had an interaction with or siting of a fairy.
With the rise of neo-paganism in the past thirty or so years, fairy 
beliefs have regained a home inside the lexicon of religion. While many 
modern pagans assert a belief in fairies and other similar spirits as 
one component of their wider belief system, others make fairy spirits 
the central aspect of their religion.  And, while this may seem like a 
niche cultural subgroup, online book sellers offer numerous titles on 
this subject, demonstrating that this niche has an ever growing 
following.
Bibliography

Briggs, Katharine. 
An Encyclopedia of Fairies, 1976.
Gundarsson, Kvedulf. 
Elves, Wights, and Trolls, 2007.
Jolly, Karen Louise. 
Popular Religion in Late Saxon England, 1996.
Lecouteux, Claude. 
The Tradition of Household Spirits, 2000.
Lindahl, Carl, et. all. 
Medieval Folklore, 2000.
Rose, Carol. 
Spirits, Fairies, Leprechauns, and Goblins, 1996.
Simpson, Jacqueline. 
European Mythology, 1987.
Spence, Lewis. 
The Magic Arts in Celtic Britain, 1999.
Carolyn Emerick writes about history, myth and folklore in the Middle Ages. You can read  about her work at her website  www.carolynemerick.com