How to Say "pipe dream" in Spanish
The Spanish word for “pipe dream” is “utopía” — B2 level.

Examples
Un mundo sin hambre parece una utopía hoy en día.
A world without hunger seems like a utopia nowadays.
El libro describe una utopía donde no existe el dinero.
The book describes a utopia where money doesn't exist.
Luchar por una utopía nos ayuda a mejorar la realidad.
Fighting for a utopia helps us improve reality.
Gender Consistency
Even though it comes from Greek, 'utopía' is a standard feminine noun. Always use feminine articles like 'la' or 'una'.
The Accent Mark
The accent on the 'í' tells you to emphasize that syllable and keep the 'i' and 'a' sounds separate (u-to-pí-a) rather than blending them together.
Gender confusion
Mistake: “el utopía”
Correction: la utopía. While many Greek words ending in -a are masculine (like 'el problema'), 'utopía' is always feminine.
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