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intr.v. fab·u·lat·ed, fab·u·lat·ing, fab·u·lates
To engage in the composition of fables or stories, especially those featuring a strong element of fantasy: "a land which ... had given itself up to dreaming, to fabulating, to tale-telling" (Lawrence Durrell).

[Latin fābulārī, fābulāt-, to talk, from fābula, tale, talk; see fable.]

fab′u·la′tion n.
fab′u·la′tor n.


(Literary & Literary Critical Terms) to invent (fables or stories)
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For example, Robert Scholes identified black humor with the recurrent intellectual reaction of artists to the limitations of realism, defining its writers as master fabulators in the tradition of the Romance and its baroque configurations, writers who are all absorbed by the possibilities of playful and artful construction (35-46).
In The Fabulators (1967) Robert Scholes praised Hawkes's picaresque mode of fiction, placing his novels next to those of Lawrence Durrell and Kurt Vonnegut.
Fabulators liberate the plot from its mimetic function postulated by Aristotle and rediscover its significance as a necessary element of the literary artifice.