The Collaborative International Dictionary of English v.0.48:

Fantasy \Fan"ta*sy\, n.; pl. Fantasies. [See Fancy.]
   1. Fancy; imagination; especially, a whimsical or fanciful
      conception; a vagary of the imagination; whim; caprice;
      humor.
      [1913 Webster]

            Is not this something more than fantasy ? --Shak.
      [1913 Webster]

            A thousand fantasies
            Begin to throng into my memory.       --Milton.
      [1913 Webster]

   2. Fantastic designs.
      [1913 Webster]

            Embroidered with fantasies and flourishes of gold
            thread.                               --Hawthorne.
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Fantasy \Fan"ta*sy\, v. t.
   To have a fancy for; to be pleased with; to like; to fancy.
   [Obs.] --Cavendish.
   [1913 Webster]

         Which he doth most fantasy.              --Robynson
                                                  (More's
                                                  Utopia).
   [1913 Webster] Fantigue

WordNet (r) 3.0 (2006):

fantasy
    n 1: imagination unrestricted by reality; "a schoolgirl fantasy"
         [syn: fantasy, phantasy]
    2: fiction with a large amount of imagination in it; "she made a
       lot of money writing romantic fantasies" [syn: fantasy,
       phantasy]
    3: something many people believe that is false; "they have the
       illusion that I am very wealthy" [syn: illusion, fantasy,
       phantasy, fancy]
    v 1: indulge in fantasies; "he is fantasizing when he says he
         plans to start his own company" [syn: fantasy,
         fantasize, fantasise]