The Merfolk are a race of aquatic Abnormals native to the Bermuda Triangle that seem to be in part human, but have evolved to life underwater. The females are referred to as Mermaids or Sirens.
A mermaid nicknamed Sally given to her by Will because her real name is unpronounceable, lives in Dr. Helen Magnus' Sanctuary in Old City. Magnus communicates with her through some form of telepathy by semi-physical touch (mirroring their palms against the glass of the enclosure).
Merfolk can psychically communicate with each other over great distances allowing Sally to stay in contact with her people while at the Sanctuary.
Merfolk live in undersea societies called "pods" and because they rely on each other so much for survival they're incredibly peaceful.
After Sally received a distress call,which she described as a series of flashes of anger and fear, on the psychic channel from her people in the Bermuda Triangle, Dr. Magnus and Dr. Will Zimmerman set out on a submarine expedition to help where they encountered what appeared to be a massacre among the merfolk. They later discover that a Water Parasite that infested their brains had caused the creatures to tear each other apart.
There are also hints given in the opening credits of Season 1 and 2 that merfolk were present at the sinking of the Titanic.
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