FAQ About Troy
It's quite possible that Troy existed, but archeologists still haven't found it. They know about Troy from Homer's Iliad and the Odyssey, both of which were written a thousand years before the city was thought to exist. The Iliad describes how King Priam of Troy and his family escape their burning city with the help of a Trojan named Sinon who kills Ajax in order for them get safely out of town. While some aspects of these stories have been criticized (Ajax is actually killed by Odysseus) there doesn't seem to be any reason why they were made up--these are usually accurate character descriptions according to ancient historians, so people generally do think there was a city called Troy.
Troy is an ancient city, first mentioned in written records in Homer's Iliad. From the 18th century BC until its destruction by the Roman Empire about 2,300 years ago, it was home to a variety of peoples and kings. The most famous residents of Troy were Helen of Troy and her husband King Priam.
Troy was located in today's western Turkey close to the modern city of Canakkale.
No, it's an allegory!
What did you know? The Trojans knock over the horse and discover a rich human sacrifice to their gods. They drag him into the temple where Priam cuts his throat as he had promised Poseidon. Meanwhile Aeneas, leading armed men and women through secret passages beneath the oak wood down from Ida, sees what has happened and tells them to take care of themselves without helping or interfering with either side.
No one knows for sure. This is the Greeks "Iliad" which tells the story of a Trojan War and its aftermath. To assume that it is 100% historically accurate would be rather foolish, as there are many discrepancies in history. For example, in Homer's tale of Pandarus shooting arrows to descend in wounds on both Menelaus and Paris, this event then never actually occurred according to Herodotus. We don't even know if Achilles was Achilles' real name (because we can't find his birth certificate), but he did have a crazy skill at running fast--so maybe it's true!