Indulgence in reveries or in fanciful and sanguine schemes.(noun)
The Century Dictionary (Public Domain)
Use "day-dreaming" in a sentence
"I was genuinely blown away by the capabilities of this application and started day-dreaming about the difference it could have made to my path through 3rd level education."
"(I do have my own personal problems that I have almost no hope to resolve, except by having some happy day-dreaming now and then to ease the pressure.)"
"* The roots of shooter's grudge against Giffords: A friend of Loughton tells Mother Jones that his grudge against Giffords as a "fake" goes back years, and adds that Loughton was a devotee of "lucid dreaming," i.e., the art of creating an alternate reality with conscious day-dreaming."