I want to have an opinion on, is it okay to let kids live in their fairy world imagination or we should give them logic and reason as what they believe in is not true? Like my daughter believe that there are fairies, or that someone lives on Moon... so should I tell her there are no fairies?

a fantasy or dream world is a child's escape from this practical and stressful world. the daily routine and grind with all its facets of anxiety can really take a toll on all esp kids. momentarily they escape into that beautiful world where they imagine the impossible is real. sometimes it helps in their creative imagination. and also brings in solace. imagine how it would be...if they have a friend who is mean to them or a teacher who is very strict, these imaginary characters fill in the gaps that rise up as questions in the child's head...ur kid wonders why is the teacher so strict or what makes her friend so mean....so she creates her fairies to be this friend who is not mean but good...and this teacher who is not strict but very friendly. this imagination helps them to focus on the good in a person and also helps in overcoming the irritation they felt when they dealt with these characters. i guess this is a phase...it will pass away after a while. in between u introduce her to various fiction story books that also incorporate reality. this change of perspective will slowly bring her imagination to accept the reality. instead of telling her in one go gradually getting her introduced to it will help

I think it is pretty normal for children to believe in faries and live in an imaginary world.How splendid it must be to see life so perfect and wonderful !! Since your daughter is still so little let her believe in it.Infact you can ask her questions like why does she believe that there is someone on the moon,etc and try to understand her point of view.Don't take away the magic and innocence of childhood just yet. In time she will realize that all this is make-believe and come out of it herself...just like we all have. :)

Let your daughter live in this fantasy world now. This is what childhood is all about. This innocence is lost once we become practical and search for logic in everything. As she grows up and learns more, she will herself come out of this phase and become practical. Till then let her enjoy!