Source : Webster's Revised Unabridged Dictionary (1913)

Confabulation \Con*fab`u*la"tion\, n. [L. confabulatio.]
   Familiar talk; easy, unrestrained, unceremonious
   conversation.

         Friends' confabulations are comfortable at all times,
         as fire in winter.                       --Burton.

Source : WordNet®

confabulation
     n 1: an informal conversation [syn: {chat}, {confab}, {schmooze},
           {schmoose}]
     2: (psychiatry) a plausible but imagined memory that fills in
        gaps in what is remembered