'folktale' originates from the combination of 'folk,' meaning 'people,' and 'tale,' meaning 'story.'

'folktale' evolved from the Old English word 'folc' meaning 'people' and 'talu' meaning 'story,' eventually becoming the modern English word 'folktale.'

Initially, it meant 'a story of the people,' and this meaning has largely remained the same in modern usage.