Such a phrase seems entirely contradictory, but it has meaning nevertheless. In our Western culture, we are wrapped up in a thought world that tells us to disregard certain aspects of our reality. These aspects have been pushed into a mental box that we label 'unreal.' Because the things and concepts in the thought box are unreal, we think that we can ignore them.
Our problem is that the two worlds of the real and unreal are actually one, and it is increasingly difficult to separate the two.
When we examine why this is so, we find that the more one tries to isolate the 'unreal' world, and put it into a mental box, the more imbalanced our mentation becomes. Rather than embracing the unacceptable, we feel that we can meditate it into nothingness. Rather than dealing with the unreal, we sense that the unreal is something else.
The attempts to box away things as unreal can lead to insanity and as the mind disintegrates the world it sees is all real, but the realness is a delusion. Insanity and realism cannot co-exist because they are at opposite ends of our mind which we have artificially segmented thinking that this somehow allows us to deal with our realities more effectively.
We do not see that the unreal and the real are not separated in reality.