Goblinheart by Brett Axel
Plot summary: Using "fairy" and "goblin" in lieu of female and male, the author has created a timely allegorical fairy tale. A youngster named Julep, who lives in a forest tribe, insists on growing up to be a goblin rather than a fairy. The tribe learns to accept that Julep is a goblin at heart, eventually coming around to support the physical transition that must be made for Julep to live as a goblin.
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A whimsical fairytale that uses “fairy” and “goblin” as genders. Fairies use their wings to tend to the trees and goblins use their claws to dig underground. Julep, despite being physically a fairy, creates mechanical claws to help them with the goblin work, winning acceptance and praise from the elders. It is quite rare to have a fantasy setting that deals with trans issues. However, this book also emphasizes and upholds a binary, leaving no room for gender queer.