The Collaborative International Dictionary of English v.0.48:

Fairy \Fair"y\, n.; pl. Fairies. [OE. fairie, faierie,
   enchantment, fairy folk, fairy, OF. faerie enchantment, F.
   f['e]er, fr. LL. Fata one of the goddesses of fate. See
   Fate, and cf. Fay a fairy.] [Written also fa["e]ry.]
   1. Enchantment; illusion. [Obs.] --Chaucer.
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            The God of her has made an end,
            And fro this worlde's fairy
            Hath taken her into company.          --Gower.
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   2. The country of the fays; land of illusions. [Obs.]
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            He [Arthur] is a king y-crowned in Fairy. --Lydgate.
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   3. An imaginary supernatural being or spirit, supposed to
      assume a human form (usually diminutive), either male or
      female, and to meddle for good or evil in the affairs of
      mankind; a fay. See Elf, and Demon.
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            The fourth kind of spirit [is] called the Fairy.
                                                  --K. James.
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            And now about the caldron sing,
            Like elves and fairies in a ring.     --Shak.
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   5. An enchantress. [Obs.] --Shak.
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   Fairy of the mine, an imaginary being supposed to inhabit
      mines, etc. German folklore tells of two species; one
      fierce and malevolent, the other gentle, See Kobold.
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            No goblin or swart fairy of the mine
            Hath hurtful power over true virginity. --Milton.
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The Collaborative International Dictionary of English v.0.48:

Faery \Fa"["e]r*y\, n. & a.
   Fairy. [Archaic] --Spenser.
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WordNet (r) 3.0 (2006):

faery
    n 1: a small being, human in form, playful and having magical
         powers [syn: fairy, faery, faerie, fay, sprite]
    2: the enchanted realm of fairies [syn: fairyland, faerie,
       faery]