reconcile - To bring two or more people or groups into a state of harmony or understanding after a disagreement or conflict.
After a long argument, they managed to reconcile their differences and rebuild their relationship, realizing how much they valued each other.
fairytale - A children's story about magical and imaginary beings and lands; or something that is too good to be true or seems unreal.
He told a fairytale about how he got the job, but no one believed him, and people suspected that he had a relative in management.