Word for the action of talking loudly with the people from your past in your imagination

Example:

Someone talks loudly with the people from her past while "imagining" them to be present in the current situation when they actually aren't.
This person does it consciously and gets instant gratification from it.

What is this action called?

Solution 1:

You could say she was play-acting.

Or playing make-believe.

1. (disapproving) imagining or pretending things to be different or more exciting than they really are

They live in a world of make-believe.

2. imagining that something is real, or that you are somebody else, for example in a child’s game

‘Let's play make-believe,’ said Sam.

Solution 2:

Confabulation feels too good to ignore:

verb

[NO OBJECT]
1 formal Engage in conversation; talk:
she could be heard on the telephone confabulating with someone

2 Psychiatry Fabricate imaginary experiences as compensation for loss of memory:
she has lapses in attention and concentration—she may be confabulating a little
_ODO