Shutter Island is a 2010 movie featuring Leonardo DiCaprio in the role of a delusional character who develops and lives an elaborate narrative to avoid facing a harsh truth following a traumatic event.
In the plot (spoiler alert below the hover-over block)
the men responsible for his treatment allow him to play out his narrative, hoping that at the end, the subject will be able to recognize how absurd it is, thus "coming out" of it more easily, which eventually happens.
I'm interested in knowing whether this strategy has any basis in real-life psychology, hence my question.
Thanks.