Everything is real. Since everything must exist in reality, it has realness. One may say a hallucination isn’t real, but what one means is that it has no external presence. It would be inappropriate to truly say the hallucination doesn’t exist, as the person who is having them is having them. What one really wants to do is work out what the hallucination is. What is the context of a hallucination’s realness? A hallucination is real in its presence in a human mind. It has context in the inner workings of the hallucinator’s mind with its interaction with the outside world. The hallucination has real function in existence, even if it’s a malady.
This can be said about anything in existence. Since anything that may be brought to our attention must exist in reality in some way (even as a fabrication) and have some function in existence, it can be claimed that everything is real. What must be determined is how it is real and what is its realness.