confabulation vs gossip

confabulation and gossip both are nouns.

Word	Noun	Adjective	Verb	Adverb
confabulation	Yes	No	No	No
gossip	Yes	No	Yes	No

As nouns, gossip is a hyponym of confabulation; that is, gossip is a word with a more specific, narrower meaning than confabulation:

confabulation (noun)	gossip (noun)
(psychiatry) a plausible but imagined memory that fills in gaps in what is remembered	light informal conversation for social occasions
an informal conversation	a report (often malicious) about the behavior of other people
	a person given to gossiping and divulging personal information about others

confabulation (verb)	gossip (verb)
	wag one's tongue; speak about others and reveal secrets or intimacies
	talk socially without exchanging too much information