The Collaborative International Dictionary of English v.0.48:

Confabulate \Con*fab"u*late\, v. i. [imp. & p. p.
   Confabulated; p. pr. & vb. n. Confabulating.] [L.
   confabulatus, p. p. of confabulary, to converse together;
   con- + fabulary to speak, fr. fabula. See Fable.]
   To talk familiarly together; to chat; to prattle.
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         I shall not ask Jean Jaques Rousseau
         If birds confabulate or no.              --Cowper.
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