The Collaborative International Dictionary of English v.0.48:

Fable \Fa"ble\ (f[=a]"b'l), n. [F., fr. L. fabula, fr. fari to
   speak, say. See Ban, and cf. Fabulous, Fame.]
   1. A Feigned story or tale, intended to instruct or amuse; a
      fictitious narration intended to enforce some useful truth
      or precept; an apologue. See the Note under Apologue.
      [1913 Webster]

            Jotham's fable of the trees is the oldest extant.
                                                  --Addison.
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   Note: A fable may have talking animals anthropomorphically
         cast as humans representing different character types,
         sometimes illustrating some moral principle; as,
         Aesop's Fables.
         [PJC]

   2. The plot, story, or connected series of events, forming
      the subject of an epic or dramatic poem.
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            The moral is the first business of the poet; this
            being formed, he contrives such a design or fable as
            may be most suitable to the moral.    --Dryden.
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   3. Any story told to excite wonder; common talk; the theme of
      talk. "Old wives' fables. " --1 Tim. iv. 7.
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            We grew
            The fable of the city where we dwelt. --Tennyson.
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   4. Fiction; untruth; falsehood.
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            It would look like a fable to report that this
            gentleman gives away a great fortune by secret
            methods.                              --Addison.
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The Collaborative International Dictionary of English v.0.48:

Fable \Fa"ble\, v. i. [imp. & p. p. Fabled; p. pr. & vb. n.
   Fabling.]
   To compose fables; hence, to write or speak fiction; to write
   or utter what is not true. "He Fables not." --Shak.
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         Vain now the tales which fabling poets tell. --Prior.
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         He fables, yet speaks truth.             --M. Arnold.
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The Collaborative International Dictionary of English v.0.48:

Fable \Fa"ble\, v. t.
   To feign; to invent; to devise, and speak of, as true or
   real; to tell of falsely.
   [1913 Webster]

         The hell thou fablest.                   --Milton.
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WordNet (r) 3.0 (2006):

fable
    n 1: a deliberately false or improbable account [syn:
         fabrication, fiction, fable]
    2: a short moral story (often with animal characters) [syn:
       fable, parable, allegory, apologue]
    3: a story about mythical or supernatural beings or events [syn:
       legend, fable]

Moby Thesaurus II by Grady Ward, 1.0:

88 Moby Thesaurus words for "fable":
   Marchen, Western, Western story, Westerner, action,
   adventure story, allegory, anagnorisis, angle, apologue,
   architectonics, architecture, argument, atmosphere, background,
   bedtime story, canard, catastrophe, characterization, color,
   complication, concoction, continuity, contrivance, denouement,
   design, detective story, development, device, episode,
   extravaganza, fabliau, fabrication, fairy tale, falling action,
   fantasy, fiction, figment, folk story, folktale, forgery, gest,
   ghost story, gimmick, horse opera, incident, invention, legend,
   line, local color, love story, mood, motif, movement, mystery,
   mystery story, myth, mythology, mythos, nursery tale, parable,
   peripeteia, plan, plot, recognition, rising action, romance,
   scheme, science fiction, secondary plot, shocker, slant,
   space fiction, space opera, story, structure, subject, subplot,
   suspense story, switch, thematic development, theme, thriller,
   tone, topic, twist, whodunit, work of fiction



Easton's 1897 Bible Dictionary:

Fable
   applied in the New Testament to the traditions and speculations,
   "cunningly devised fables", of the Jews on religious questions
   (1 Tim. 1:4; 4:7; 2 Tim. 4:4; Titus 1:14; 2 Pet. 1:16). In such
   passages the word means anything false and unreal. But the word
   is used as almost equivalent to parable. Thus we have (1) the
   fable of Jotham, in which the trees are spoken of as choosing a
   king (Judg. 9:8-15); and (2) that of the cedars of Lebanon and
   the thistle as Jehoash's answer to Amaziah (2 Kings 14:9).