Transposition was the act of incorporating elements of one's delusion onto real occurrences.
In 2369, Dr. Syrus claimed that William T. Riker's belief that a Klingon had cut him with a knife was an example of transposition, when in reality Riker had hit his head on a door. Syrus claimed it was a good sign, as previously Riker hadn't been able to disengage from his "starship fantasy" at all. (TNG: "Frame of Mind")