fantasy

(noun) imagination unrestricted by reality. Synonyms: phantasy. Example: "A schoolgirl fantasy."

(noun) fiction with a large amount of imagination in it. Synonyms: phantasy. Example: "She made a lot of money writing romantic fantasies."

(noun) something many people believe that is false. Synonyms: illusion, phantasy, fancy. Example: "They have the illusion that i am very wealthy."

(verb) indulge in fantasies. Synonyms: fantasize, fantasise. Example: "He is fantasizing when he says he plans to start his own company."