We had wings for all the kids to wear (you can buy them at the $1 store) but they were available to borrow at the themed venue we chose. The kids flapped around like fairies. Then played some games one w/ a dragon and castle the rest non fairy related ie: musical chairs, duck-duck-goose. Also, we painted their nails w/ glitter nail polish and sprinkled fairy dust on the kids cheeks.
ETA: I thought of another activity. The girls made bracelets w/ snap on beads which doubled as a party favor.
The party favors included Tinker Bell cups I found at Walmart (cheapest but also found at Target and Party City). Goody bags included Tinkerbell stickers, pencils, note pad, ring stamp,etc...There is a bunch of TinkerBell Goody bag fillers.
You can see the green tinkerbell cups on the table and pink bracelets in this pic.