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.
   [1913 Webster]

         Vain now the tales which fabling poets tell. --Prior.
   [1913 Webster]

         He fables, yet speaks truth.             --M. Arnold.
   [1913 Webster]

WordNet (r) 3.0 (2006):

fabled
    adj 1: celebrated in fable or legend; "the fabled Paul Bunyan
           and his blue ox"; "legendary exploits of Jesse James"
           [syn: fabled, legendary]