くうそう空想kuusou
1.

The act of imagining scenarios or ideas that are far removed from reality, often characterized by whimsical or idealistic thoughts that lack practical feasibility.

2.

A mental escape into imaginative narratives or concepts, where one envisions events or circumstances that are unlikely or impossible in the real world.

3.

The creative process of constructing fantastical images or experiences in one's mind, often indulging in unrealistic aspirations or dreams.

Example:

彼は空想の世界に生きている。