Welcome to Equestria

The story of My Little Pony Friendship is Magic takes place in Equestria, a land inhabited by magical talking ponies and other sapient animals. Equestria is a principality (referred to as a kingdom) ruled by Princess Celestia and Princess Luna.

The founding of Equestria:
The story of the founding of Equestria is relayed in software, and part of this explanation is covered in the episode Hearth's Warming Eve.

The three tribes trotting to the summit.The episode's most prominent feature is a play about the founding of Equestria, narrated by Spike. He explains: "each of the three tribes, the Pegasi, the unicorns, and the Earth ponies, cared not for what befell the other tribes, but only for their own welfare. In those troubled times, as now, the Pegasi were the stewards of the weather, but they demanded something in return: food that could only be grown by the Earth ponies. The unicorns demanded the same, in return for magically bringing forth day and night. And so, mistrust between the tribes festered, until one fateful day, it came to a boil. And what prompted the ponies to clash? 'Twas a mysterious blizzard that overtook the land, and toppled the tribes' precarious peace."
The Equestrian flag.

The blizzard led to famine, and each leader of each tribe decided to journey to a new land. They all arrived at the same place, and soon began fighting over it, and the blizzard quickly followed. "And so the paradise that the ponies had found was soon lost, buried beneath a thick blanket of snow, and hard feelings." Eventually the leaders' assistants find out Windigoes are causing the storm by feeding off of hate. The assistants' friendship creates the magical Fire of Friendship which does away with the Windigoes and the snowstorm.
The three leaders then decide to join forces and found a country shared by all three tribes, and name it Equestria.

Night Mare Moon:
Night Mare Moon, from the prologue. The narration continues: their subjects, the ponies, played in the day but "shunned" the night and slept through it, which made the younger unicorn grow bitter, eventually refusing to lower the moon to make way for the dawn. Her bitterness transformed her into a "wicked mare of darkness", Night Mare Moon. The elder sister reluctantly harnessed the power of the Elements of Harmony and banished her "in" the moon, taking responsibility for both sun and moon, maintaining harmony in Equestria. The events of the first and second episodes take place a thousand years after Night Mare Moon's imprisonment, upon which she is freed, but defeated again through the magic of the Elements of Harmony, only this time she is transformed back to her former self and returns to rule Equestria with her sister.

((theres more information but i can't post it because there is a maximum lenght for a profile post. Information may change over the course of the show.))

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