The Legend of the Fairy Stone: Many hundreds of years before Chief Powhatan's reign, fairies were dancing around a spring of water, playing with naiads and wood nymphs, when an elfin messenger arrived from a city far away. He brought news of the death of Christ. When these creatures of the forest heard the story of the crucifixion, they wept. As their tears fell upon the earth, they crystallized to form beautiful crosses. When the fairies disappeared from the enchanted place, ground about the spring and the adjacent valley was strewn with these mementos of the event. For many years people held these little crosses in superstitious awe, firm in the belief that they protected the wearer against witchcraft, sickness, accidents and disaster. Fairy stones are brown staurolite, a combination of silica, iron and aluminum. Together, these minerals crystallize in twin form, accounting for the crosslike structure. Found only in rocks that have been subjected to great heat and pressure, the stones are most commonly shaped like St. Andrew's and Roman crosses. The most sought after are those in the shape of the Maltese cross. Staurolite stones are also found in the mountains of North Carolina and in Switzerland, but nowhere else in the world are they found in such abundance and shaped so nearly like crosses as in the vicinity of Fairy Stone State Park.

In the late 1920s various groups across the commonwealth began working towards the establishment of state parks in Virginia. It wasn't until 1933, however, with the establishment of the Civilian Conservation Corps (CCC) that the state was able to begin building such a system. At that time, six areas were acquired, including Fairy Stone. Roanoke newspaper publisher Julius B. Fishburn donated the 4,868 acre site, making it the largest of the six original parks, and one of the largest to this day. The CCC provided the labor and materials for the construction of the park from 1933 until the CCC camp was removed in the spring of 1941. Roads, trails, picnic areas, cabins, a restaurant, bathhouse, dam and sanitation system are all part of the original CCC construction. Their handiwork is still evident in the park's log cabins.