How are folktales and fairytales related?

A Fairy tale is a type of folktale but a Folktale is not always a Fairy tale. Fairy tales are usually fiction and made up and includes magic and magical creatures. And folktales are based on real life events that have happened

many reasons

Explanation:

They are related because folktales are usually passed down by word of mouth and fairytales can also be passed down by word of mouth.