CONFABULATION
confabulation
(noun) (psychiatry) a plausible but imagined memory that fills in gaps in what is remembered
chat, confab, confabulation, schmooze, schmoose
(noun) an informal conversation
Source: WordNet® 3.1
Etymology
Noun
confabulation (countable and uncountable, plural confabulations)
A casual conversation; a chat.
(psychology) A fabricated memory believed to be true.
Source: Wiktionary
Con*fab`u*la"tion, n. Etym: [L. confabulatio.]
Definition: Familiar talk; easy, unrestrained, unceremonious conversation.
Friends' confabulations are comfortable at all times, as fire in
winter. Burton.
Source: Webster’s Unabridged Dictionary 1913 Edition