Confabulation

Confabulation is when a person remembers something incorrectly or makes up stories or information that seems real, but isn't. It's like when a person makes up a story in their head and then believes it is true. For example: let's say a person was asked to remember the name of a street they lived on when they were a child. If they can't remember what it was, they could make up a name that sounds real and now believe that that is the true name. This is confabulation.