The Falabella is one of the world's best known miniature horse. Because of its conformation and character, the Falabella should never be referred to as a pony, despite its size. One of the defining characteristics of a pony is that its body length exceeds its height, and this is not the case with the Falabella horse.

When breeding a Falabella, the goal is to produce an almost perfect horse, but in miniature proportions. However, because they are bred almost exclusively for size, this can lead to health problems, genetic defects, or structural mistakes.

Though a Falabella can not be ridden – it is too small and the withers are too flat – it is often kept as a pet, one known for its good temper and kind nature. The breed is seen as purely decorative and something of a curiosity.

The breed evolved through a selective breeding program that was started by the Falabella family of Buenos Aires. By crossing small Shetland ponies with a very small Thoroughbred stallion, they were able to get the horse conformation, but the smaller size. They then continued downbreeding by mating the smallest horses together until they came to what is now known as the Falabella.

The smallest Falabella Horse on record as only 20” high at the withers and was bred in West Virginia.

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