fabulate
To tell invented stories, often those that involve fantasy, such as fables.
intransitive
Human fears, needs, dreams release the latent propensities of the subliminal soul, and to respond to them the fabulating imagination sets to work.
To relate as or in the manner of a fable.
archaic, transitive
Anyone who considers it a pleasure to compose short stories or to fabulate a tale, must remain silent and say nothing of her beauty.
To tell fables, to narrate with fables.
intransitive, obsolete
The Fort is ſo barricadoed, that it is hard ſcaling it : the refractary Rebell ſo guarded with Euill and Poyſon, ſo warded with unruly and deadly ; as if it were with Gyants in an Inchanted Towre, as they fabulate ; so no man can tame it.
Where it comes from
From Latin fābulātus, perfect active participle of fābulor (“to tell stories, chat”) (see -ate (verb-forming suffix)), from fābula (“fable”).
Adapted from the Wiktionary entry fabulate (CC BY-SA 4.0).