Faeries reproduce sexually. They lay eggs (all flying creatures do). These are always very well hidden and are rarely seen. The young are nurtured for a day and a half until their wing grow and harden, then they are semi-independent, learning only as they need or care to.
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They don't. When the first baby laughed for the very first time, its laugh broke into a million peices and they went skipping about, and that was the begining of fairies. But every time someone says "I don't believe in fairies", a fairy dies. From Peter Panby J.M. Barrie. I DON'T BELIEVE IN FARIESSSSSSS. D:
Faeries are mythical creatures, so their method of reproduction is not clearly defined in folklore. In some stories, they are said to procreate through traditional means, while in others, they may emerge from certain plants or even be born from the elements themselves.