According to Wikipedia, Fiction is any creative work, chiefly any narrative work, that weaves a captivating tale of individuals, events, or places that are purely imaginary or depicted in imaginative ways, sparking the reader's curiosity.
According to an AI overview on Google, Fantasy is a story that weaves a spell of wonder, including fantastical and unbelievable elements, often featuring magic, mythical creatures, and imagined worlds, essentially making the 'imaginary' elements the narrative’s core.
The line between these two literary approaches may need to be thicker. The term fantastical suggests that what is portrayed is beyond the scope of everyday life, with often a unique universe for what happens, including events and life forms we don’t personally experience.
When we read fictional events, they often seem fantastical, but given enough time, we often look back on what we thought was fantastical and realize that it was indeed real, a testament to the transformative power of literature.
Fantasy is a subgenre of fiction that typically features magical, supernatural, or fantastical elements that are not grounded in real-world science or history
“It's no wonder that truth is stranger than fiction. Fiction has to make sense” is a quote by Mark Twain.
Twain also said, “Truth is stranger than fiction, but it is because Fiction is obliged to stick to possibilities; Truth isn't”
Fiction reveals truth that reality obscures. - Ralph Waldo Emerson