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.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.


(Literary & Literary Critical Terms) to invent (fables or stories)
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014
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At the same time, she said the girls were inclined to fabulate and exaggerate.
because, if the remit of utopian writers is to fabulate social systems
But although much of Yan's art of the past half decade seems poised at the edge of fiction, he's quick to disclaim any fundamental urge to fabulate. When he invokes the novel, it's to say that the work requires--on the artist's part and ours--a constant parley between design and anecdote, plot and performance, argument and material order.
The only alternative to the attendant doubt Chow identifies--anxiety leading to "self-hatred and impotence"--is to somehow refuse this identification, to assert and enact that "I is another," and to fabulate a different version of the story that coercive mimeticism would have us tell.
Deleuze speaks of fabulation as an aspect of inventing a people to come: fabulation is an activity that need not reinforce restrictive power structures, entails a projection into the real of images that take on a life of their own, and has nothing to do with memory in the ordinary sense (to fabulate is to create giants whose projected images take on a life of their own).
Magritte and Borges are in effect asking us to fabulate, to invent a narrative that will order the incongruous.
Freed from the will to fabulate truth, it engages in a narrative hermeneutics, exploring the ubiquitous sway of signs and language, the foundation of knowledge in hearsay, or sentito dire (see Celati "Dialogo" and Porretto).
than tongues can fabulate, worth more than speech can spatulate, than
"A lifetime's experience of storytelling," Hare writes, "has convinced me that nothing is harder in the arts than to be contemporary." Yet in elegant lectures like "Why Fabulate?" he makes a lively case for why artists should keep striving to reconfigure current events into fiction.
Anzia loved to wear masks, to fabulate and confound her own history, but as a writer, she had no mask--she was pure emotion in a language that didn't really fit.
We all know objective truth is not obtainable, that when some event occurs we shall have a multiplicity of subjective truths which we assess and then fabulate into history, into some Godeyed version of what "really" happened.