Scrape a flat area in a moist, shady spot using a trowel. Outline a 10-inch-diameter circle with a circle of string.
Use a putty knife to scrape up moss. Fill the circle with moss. Water it well and remove the string.
Plant a few small plants around the back side of the circle. Choose plants that look like small versions of larger plants, if you wish the garden to be fairy-scale. Scatter pea gravel around the edge of the moss under the plants.
Place a few 3-inch-high rocks around the edges of the fairy ring. Cut 2-inch-long pieces from a 1-inch-diameter stick to use as stools.
If desired, add a few miniature tools such as buckets or wheel barrows or set tiny dishes on the rocks. Hot glue the dishes to the rock to hold them in place.