This reality collided with another that was a realm of spirit and chaos without any material component. When this happened elements from the other reality bled into this one and magic became part of this reality. Extremely powerful spirits from the other realm discovered they could travel between the worlds. While they could exist as pure spirits here they found taking on a physical form allowed them to experience this reality in a whole new way. These powerful spirits would inhabit a natural creature in this new world and in doing so would modify it by their presence. They could also consciously shape their hosts to be better suited to fulfilling their desires. They opened pathways to our world for their followers and instructed them on how to inhabit hosts and modify them.
Eventually these spirits flooded into our reality. Some remained in spirit form but most joined their essence with living beings and a few with objects or places.
Untold millennia passed between The Collision and The Awakening. During this time the Elder races were created. Ancient spirits from the other reality crafted them or aided in their creation and inhabited the first of their kind as vessels. However these races were based on the natural races of this world and had sexes and natural urges and the spirits inhabiting these vessels reproduced and the children inherited aspects of both the physical vessels and the spirits they contained.
It unknown if the “Father” and the “Mother” always existed and just made their presence known during the Awakening, or if the influx of magic had allowed the very world to form “spirits” of its own. But there came a time when the Mother and the Father made their presence known. “He” was order and planning and the concept of beginning and end, the very rules of reality. “She” was life and all the chaos that it entailed. And they looked upon “their” world and saw that it was not as intended. That it had been invaded and distorted by another reality.
And so it was that the “Father” stuck out at the realm of spirit and chaos and shattered it. It became (at least) three realms none of whom could interact with the other. Most of the “connections” between this realm and the others became broken, fragmented and impassable. Only the strongest of spirits could use them. Most spirits became trapped within their vessels fusing with them so they were now one being.
The elder races as the Elves, Dwarves, and other non human races were known. Had been dominant in this world for millennia. However this was not the plan of the Father or the Mother. And so they ascended Humans to their rightful place. (Halflings may disagree) They made them bigger, stronger, quicker, and more intelligent. And among their leaders the Father spread his power and knowledge, creating the human gods as we know them. With this the Father ceased to be in any way mortals can discern.