Man and his experience of the world are reality within the waking experience. Thus, whatever seen, known, believed and experienced as a person of the world are happenings within the waking experience.
The world within the waking experience is not unreal but the waking experience is unreal. The waking experience is phenomenal appearance till one gets his enlightenment /wisdom. It is just like a dream, which appears to be real so long as one is asleep but vanishes the moment he wakes up. In the same manner, as long as we are steeped in ignorance, nescience; this waking appears to be real. Soon it sinks into oblivion when one wakes up to and gets firmly establishes in the conviction that the soul is the true self.
The waking is which is unreal appears to be real, but when the wisdom dawns one becomes aware of the fact that all the three states are unreal on the standpoint of the soul as self.