The Collaborative International Dictionary of English v.0.48:

Fairyland \Fair"y*land`\n.
   The imaginary land or abode of fairies.
   [1913 Webster]

WordNet (r) 3.0 (2006):

fairyland
    n 1: something existing solely in the imagination (but often
         mistaken for reality) [syn: fantasy world, phantasy
         world, fairyland]
    2: the enchanted realm of fairies [syn: fairyland, faerie,
       faery]