story, legend

(いつわ) Anecdote
(むかしばなし) Old (over 1000 years!) story – but not about gods, (that’s 神話) Think of Beowulf or the Icelandic epics.
(ものがたり) A tale- often used in the title of a book or movie. As in ‘The Tale Of Genji’ or ‘The Tale Of Two Cities.’
(どうわ) Children’s story
(でんせつ) A legend – King Arthur, Robin Hood, etc.
(しんわ) Myth (literally ‘god story’)
(しょうせつ) A novel
(かたり) Narration
メルヘン A German word, referring to Grimm’s Fairy tales and the like.