Confabulate is a fancy way of saying “talk.” If you’re feeling formal, you don’t chat with your best friend on the phone, you confabulate. Regular people talk, people wearing tuxedos and beaded evening gowns confabulate.
Confabulate means to talk, but it also refers to creating a memory that’s unreal, like a fable, without being aware of it. If you suffer from memory loss, you might confabulate to fill in the blanks. The word comes from the Latin com- for "together" and fabulari for "to talk," which comes from fabula for "a tale." Whew. For a long time, confabulate just meant “to talk,” but the psychiatric sense came later.