Rural fantasy traces its roots back to traditional folklore and oral storytelling traditions, where myths and legends were an integral part of rural community life. European fairy tales and folklore often featured rural settings—such as enchanted forests, village festivals, and magical creatures inhabiting the countryside—establishing foundational elements that continue to inspire contemporary rural fantasy narratives.

In the early 20th century, authors like J.R.R. Tolkien significantly influenced the genre through works such as The Hobbit (1937) and The Lord of the Rings (1954-1955), portraying idyllic rural settings like the Shire, symbolising peace, tradition, and harmony with nature. These iconic depictions emphasised the pastoral ideal and significantly impacted the genre’s portrayal of rural landscapes as havens of tranquillity and subtle enchantment.

Rural fantasy gained increased prominence in late 20th and early 21st-century literature as writers deliberately explored the pastoral charm and rustic mystique. Notably, authors such as Charles de Lint, Neil Gaiman, and Juliet Marillier integrated rural folklore, magical realism, and rich character-driven narratives, firmly establishing the subgenre. Works like Marillier’s Daughter of the Forest (1999) and Neil Gaiman’s Stardust (1999) demonstrated the subgenre's versatility and enduring appeal, presenting magic as an integral, though subtle, part of rural life.

In contemporary media, rural fantasy has expanded across various platforms, including film, television, and graphic novels. Animated features such as Studio Ghibli’s My Neighbour Totoro (1988) exemplify rural fantasy's charm, highlighting simple yet profound interactions between humans and nature spirits.

Modern rural fantasy continues to flourish, addressing contemporary issues such as ecological preservation, community cohesion, and cultural heritage. It remains deeply resonant in literature and popular culture by emphasising timeless values such as friendship, kinship, sustainability, and respect for the natural world. Authors today increasingly explore diverse rural settings, incorporating global folklore and indigenous traditions, enriching the genre’s scope and relevance.

Rural fantasy endures as a beloved subgenre that captures the magic and nostalgia of country life, offering readers imaginative, heartwarming narratives steeped in tradition, wonder, and connection to nature.