Definitions of fabulate:
- verb: (intransitive) To tell invented stories, often those that involve fantasy, such as fables.
- verb: (transitive, archaic) To relate as or in the manner of a fable.
- verb: (intransitive, obsolete) To tell fables, to narrate with fables.
- noun: A folk story that is not entirely believable.
- noun: (specifically) A folk story that is told for entertainment, and not intended to be taken as true.
(Definitions from Wiktionary)
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