1. the act of confabulating; conversation; discussion.
2. Psychiatry. the replacement of a gap in a person's memory by a falsification that he or she believes to be true.
1. an informal conversation
"I don't know what the big deal is," said Ray to his girlfriend when she saw him talking with his ex. "We were only sharing a small confabulation. It was nothing more than small talk!"
I wish I knew a way to use the second meaning in a sentence, but I don't quite understand it, so I'm not going to even try to butcher it. I just thought this word sounded spectacular!