Although it is difficult to draw rigid distinctions among various types of traditional tales, people who study mythology find it useful to categorize them. The three most common types of tales are sagas, legends, and folktales.
When a tale is based on a great historical (or supposedly historical) event, it is generally known as a saga. Despite a saga's basis in very distant historical events, its dramatic structure and characters are the product of storytellers' imaginations.
A legend is a fictional story associated with a historical person or place.
Myths may include features of sagas, legends, and folktales. What makes one of these tales a myth is its serious purpose and its importance to the culture. Experts usually define a myth as a story that has compelling drama and deals with basic elements and assumptions of a culture.
Myths explain, for example, how the world began; how humans and animals came into being; how certain customs, gestures, or forms of human activity originated; and how the divine and human worlds interact.
Many myths take place at a time before the world as human beings know it came into being. Because myth-making often involves gods, other supernatural beings, and processes beyond human understanding, some scholars have viewed it as a dimension of religion. However, many myths address topics that are not typically considered religious—for example, why features of the landscape take a certain shape.
Folktales, a third variety of traditional tale, are usually simple narratives of adventure built around elements of character and plot.