Other forms: confabulations
If you're chatting away for hours to your old college friend who you haven't seen in years, that's a confabulation — a personal, often rambling and generally wide-ranging conversation.
A second, slightly sinister and less common meaning for confabulation is a false memory that someone creates to fill out gaps where real experience has been too traumatic to recall. As with the more common and happier meaning, both types of confabulation generally imply a good deal of creative, free-wheeling association.