Equestria is the main setting of the My Little Pony Friendship is Magic franchise. Equestria is inhabited by magical ponies and other talking creatures, such as griffons and dragons. Other animals and creatures also live in Equestria. Equestria is a kingdom co-ruled by Princess Celestia and Princess Luna, who watch over it through telescopes at the top of a tower in their base city of Canterlot. The name "Equestria" is derived from the word "equestrian" (which means of or related to horseback riding), which stems from equus, the Latin word for "horse."
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MLP:FIM The Pegasisters guide book
Acakevery pegasister needs to know this, so why not have it all in one place?