Capalli

On the exterior , Capallis appear to be horses in nearly every way. They vary in color, type, and body conformation in a way very similar to modern horses used for the variety of tasks found within the general world. Capallis, however, are an ancient race of beings who are highly intelligent. They communicate primarily through telecommunication but often only speak to a selected few outside of their own race.
Little is known about their history. They becan in the Elven Lands across the northern sea. The elves used them for their strength but did not historically respect their intelligence or complex social structure. As a result, the Capalli escaped across the sea to thewhat was then the unpopulated islands of Cantaria.
The lands didn't remain unpopulated, though. Humans moved in from the neighboring continents looking to expand beyond their own established but opressive governments.
At first, the Capallis attempted to live in peace with the humans, but it soon became clear that the humans were unable to communicate directly with the Capallis in the way other races were able to do. This lead to the Cappallis being captured and treated as beasts of burden. Eventually the humans noticed that certain of their animals had a propensity for escape and were harder to train.
A visiting elf recognized the Capallis for what they were and explained the nature of the animals to the humans, teaching them to open their minds to be able to communicate directly with them. Horrified at their treatment of the Capallis, the humans raised them to a status of celebrity, revering them above the gods for their creativity, wisdom, and insight.
This angered the gods, especially Dionara, goddess of equines. She smote the Capallis, scattering them across the continents to break up the worship the humans had established. Chagrined, it is said that the Capallis then went into hiding. Some believe that they have since gone extinct as they were no longer able to maintain herds large enough for sufficient genetic diversity. Other believe that they are often mistaken for mythical horses - unicorns in the forests, Kelpies near the oceans, or pegasi as they fly across the plains.
Most experts believe that they do still exist in today's world, but they rarely reveal themselves to anyone outside of their own race.