An old legend remains in this town.
彼は伝説の英雄として語り継がれている。
He is passed down as a legendary hero.
That match has become a legend among fans to this day.
According to legend, a dragon once lived on this mountain.
He is called a legendary guitarist.
That warlord left behind many legends.
伝説 refers to a legend passed down as (semi-)historical lore, while 物語 is the broader term for any narrative, fictional or not.
myths of asexual conception from natural objects
heroic legend; heroic legendary tale