noun
anecdote; short comic story
A brief, often humorous story or anecdote. Can be a standalone tale or a short rakugo-style piece. The two senses overlap significantly in modern usage.
彼は会議の前に小話を披露して、場を和ませた。
He told a short comic story before the meeting to lighten the mood.
この本には
This book contains many interesting anecdotes from the Edo period.
Alternate kanji spelling using 咄, which specifically means 'comic story' or 'anecdote'.
Alternate kanji spelling using 噺, a variant of 咄 with the same meaning.
Compound of 小 (small, short) and 話 (story, talk). The kanji 咄 and 噺 are specifically associated with comic or witty stories.