"Fantasy Is Reality" is a 1977 song recorded by the funk band Parliament. It was the only single released from the album '. The song was originally recorded during Parliament's period at Invictus Records. Unlike the bulk of Live: P-Funk Earth Tour, "Fantasy Is Reality" was recorded in the studio, as was its B-side, "The Landing (Of the Holy Mothership)".
"Fantasy Is Reality" was cut from the album's 1991 CD reissue, but was included on the Parliament compilation album Tear the Roof Off 1974-1980. A version is also featured as a bonus track on the CD reissue of Osmium. It reached number 54 in the U.S. on Billboard's Hot Soul Singles chart.
The midtempo track has been called a "churchy funk ballad".