fabulating

/ˈfæbjəˌleɪtɪŋ/
verb
  1. Present participle of fabulate: the act of inventing or creating a story, often with imaginative or false details.
    • He spent the afternoon fabulating excuses for his missing homework.
    • Fabulating is a common pastime for creative writers.
    • The children were fabulating a story about a magical forest.
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