A story's falling action is what comes after the main climax and leads to the conclusion. During the falling action of "Little Red Riding Hood," a woodsman hears Red's cries and rescues her from the wolf.
The climax of that famous fairy tale occurs as Red discovers the sweet old lady with big eyes and big teeth is not her grandmother, but a wolf in disguise. The part of the plot following that climactic moment is the story's falling action. A lessening of tension and some resolution usually occurs during the falling action, and then all the loose ends get tied up during the dénouement.