Use an existing fairy tale and imagine what might have happened next. In some of the stories, things end "happily ever after," but what exactly does that mean? Imagine things don't quite work out as they should. Think of specifics relating to each character in your fairy tale of choice. Imagine their stories progressing beyond the end of the tale as we know it. What might they do next? How might other characters react?
Think about a story that has recently been in the news. Use it as a starting point for a fairy tale. Change the details to suit a fairy-tale format. Make the characters larger-than-life or more exaggerated versions of the real characters involved. Either use the real story's starting point as a jumping-off point and take the story anywhere, or stick closely to the actual story so that anyone who hears it recognizes its source.
Sit with a group of friends in a circle. Choose one person to start creating a fairy tale by making up a sentence. The second person continues the tale with another sentence, and so on. One friend should write or type the story as it is created. When you have the first draft of your fairy tale, read it and decide among the group how you could improve it. Try to make gripping, dramatic and fantastic.
Working with friends, write as many fairy tale elements as you can onto separate cards. Fairy tale elements include characters, such as "giant," "fairy," "goblin" and "elf." They also include places, such as "enchanted forest," "Prince's palace," "woodcutter's cottage" and "mountain." Animals include "goose," "snake," "fox" and "bear." Don't forget magic things, such as "ring," "carpet," "mirror" and "coin." Try to write about twenty things or more, each on a separate card. Shuffle them. Start the story with: "Once upon a time there was a . . . ," then deal a card. Keep making up the story and deal a card every time you need a new element. If the element doesn't fit, put the card at the bottom of the deck and deal another.