For a Gnani, this illusion is just a zero. An individual, still groping in the ignorance considers himself to be an integer and goes on adding zero to it. Thus, as that integer becomes then, hundred thousand etc., in the same way, for an ignorant man, this illusion makes the waking appear to be real with all this diversity of name and form.
Only the Gnani perceives the reality as such. Just as several ornaments are made of gold, the one Atman /consciousness becomes the waking or dream. The ice is made of water in reality ice is noting but water. The Gnani realizes that the all the three states are mere mirage created out of consciousness.
What is reality to the person within the world is unreality to the Atman or consciousness the innermost self. What is truth on the standpoint of Atman is untruth for the ignorant, who is experiencing the duality as reality.