故事 (gù shì) means 'story' — a narrative with characters, events, and often a beginning, middle, and end. The character 故 (gù) originally meant 'old' or 'former', and in this compound it conveys the sense of 'past event' or 'incident'; 事 (shì) means 'matter' or 'affair'. Together, they literally suggest 'a past matter' — reflecting how stories traditionally recount events, whether real or imagined. This word is neutral in register and widely used across ages and contexts.

You’ll hear 故事 in children’s books, oral storytelling, film descriptions, and even news headlines referring to personal or historical narratives. It can refer to fictional tales (like fairy tales), biographical accounts, or anecdotal experiences — though for strictly factual reporting, 新闻 (xīn wén) or 报道 (bào dào) are more precise. Unlike 传说 (chuán shuō), which implies legendary or unverified lore, 故事 carries no inherent truth-value: it simply denotes a structured narrative form.