Other forms: fabulated; fabulates; fabulating
To fabulate is to tell a tall tale — in other words, to lie. You might be tempted to fabulate a story about why you don't have your homework, but you should probably just tell the truth.
Fabulate shares a Latin root, fabula, "story or tale," with fable. Strictly speaking, when someone writes or tells fables along the lines of The Tortoise and the Hare, they fabulate. More often, it's a fancy way to describe what a liar does: "He fabulated his entire resume, claiming he went to Harvard and served in the Peace Corps before he turned 21!"