Original title: "El Laberinto del Fauno" (imdb link).
A fairytale for grownups. A fantasy story weaved into second world war Franco's Spain, with resistance fighting against government soldiers.
A monstrous bully of a general brings his pregnant wife and adoptive daughter out to the frontier to have his sun born "where true men live". The magic in the story starts unravelling during the very first minute of the film, so for us fantasy-buffs there is enough magic from the start to keep us interested.
However it is _rather_ gory and extremely violent, so _do not_ be tempted to let your kids watch this movie (unless they're 15 years old or so). It's quite scary, but all that is "good scary" (tolerated by me, the biggest scaredy cat ever). The only borderline thing is the violence. But then again, war is and evil people are violent. The film only illustrates it in a very natural manner.
Fairytale-fantasy = go watch! :-)