Of course your kiddo enjoyed that old fantasy tale from Grandma or the fairy tale book that you have bought for her. But, do not expect her to live in that fantasy world any longer. Now she can easily distinguish between fantasy and reality, which signifies a step ahead towards her perspective seeking development.
What you need to know
Fantasy tales will still be a part of her night routine and she will enjoy them, but do ask for her opinion on the same. Ask her how this would have been in the real world or how she would have wanted that tale to end in a real world.