1. fabulate - Noun
2. fabulate - Verb
(intransitive) To tell invented stories, often those that involve fantasy, such as fables.
(transitive, archaic) To relate as or in the manner of a fable.
(intransitive, obsolete) To tell fables, to narrate with fables.
A folk story that is not entirely believable.
(specifically) A folk story that is told for entertainment, and not intended to be taken as true.
Source: en.wiktionary.org