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Demons and mythological creatures are often thought of as fairy tales. Obviously fake creatures that we tell stories about to our children for enjoyment. However, what if these tales are true and elves, dragons, and demons exist/existed in parts of our world but just in hiding, afraid of coming in contact with humans? Dragons may have been dinosaurs that survived the meteor/other theory, reptilian, winged, dinosaurs that lived till the first of humans.
Elves, fairies, and dwarfs could easily live in an unknown cave somwhere in a mountain range. They could have colonies of themselves but be hidden somewhere we have yet to explore. Perhaps they as oblivious to humans as we are to them, and if they do exist, after all they are tiny while we are fairly large and it would be easy to miss them.
Although there has yet to be proof of them living on Earth, there is no proof of them not living somewhere else. We have never seen another creature that has come from a planet other than ours, therefore it is theoretically possible that they may be smaller versions of ourselves similar to our interpretation of dwarves, elves, fairies. Humans may be only a beginning link in a series of humanoid beings that have evolved faster then us on similar planets to ours that we have yet to discover.
The prospect of mythological creatures being alive on a distant planet or somewhere on our own is unlikely but possible. However if we believe that they don't exist then they will not, but if we have an open mind about them, then it is possible that they might show up one day. So keep an open eye out for small, scurrying, human shaped creatures and we may find yet another inhabitant of this world.