To respond to a negative situation lightheartedly, as though it were a joke.(verb)
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Use "laugh off" in a sentence
"At first Alexander tried to laugh off the prophesy, quoting a line from the Greek playwright Euripides that the best prophet is one who guesses well, but he was still a man of his times and superstitious enough to be cautious when it came even to questionable warnings from the gods."
""You take things in stride, you laugh off the insults, and you have a fuck-you attitude that I wish to hell I could emulate.""
"I knew that I, like Jill in Blubber, was going to have to learn not to punch Shoshona but to laugh off her taunts."