How to Say "to sugarcoat" in Spanish
The Spanish word for “to sugarcoat” is “disfrazar” — B2 level.
English → SpanishB2
verbB2
making something bad seem better

Examples
No intentes disfrazar la verdad con palabras bonitas.
Don't try to hide the truth with pretty words.
Disfrazó su nerviosismo con una risa fuerte.
He concealed his nervousness with a loud laugh.
Figurative Use
This verb works just like the English word 'mask' or 'cloak'. You are 'putting a costume' on a situation to hide its true nature.
Related Translations
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