One of the explicit design goals of 5th edition D&D is to depict humanity in all its beautiful diversity by depicting characters who represent an array of ethnicities, gender identities, sexual orientations, and beliefs. We want everyone to feel at home around the game table and to see positive reflections of themselves within our products. “Human” in D&D means everyone, not just fantasy versions of northern Europeans, and the D&D community is now more diverse than it’s ever been.
https://dnd.wizards.com/articles/features/diversity-and-dnd
During last nights game I struggled with this very issue. I used the term Humanity to refer to my party of Lizard Men, Gnomes, Dwarfs, Elves (I am playing an Elf!), etc. The Brigand accused me of bias.

I grew defensive and argued that Humanity referred to all sentient life, but I do not think that is true.

There must be a Fantasy Term that includes all sentient life.

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