Create a folder named DLC inside your main Fable 3 folder.

Fable 3 often fails to launch on Windows 10/11 because of the defunct GFWL service. If your zip contains xlive.dll and xlive.ini , follow these steps:

Open the zip and move xlive.dll and xlive.ini into your main Fable 3 install directory (usually found in Steam\steamapps\common\Fable 3 ).