The Falabella was first bred in Argentina by crossing small Thoroughbreds with Shetland ponies. The Fallabella is not suitable for riding. It is really a miniature horse rather than a pony and is the smallest horse in the world. It stands 7 hands and comes in all colors. The Falabella is very intelligent, easily trained, and very gentle and affectionate by nature. The Falabella thrives with a lot of personal love and attention. It is registered in the American Miniature Horse Association and the American Miniature Horse Registry.