arXiv:2510.00034v1 Announce Type: cross Abstract: The widespread adoption of large language and vision models in real-world applications has made urgent the need to address hallucinations -- instances where models produce incorrect or nonsensical outputs. These errors can propagate misinformation during deployment, leading to both financial and operational harm. Although much research has been devoted to mitigating hallucinations, our understanding of it is still incomplete and fragmented. Without a coherent understanding of hallucinations, proposed solutions risk mitigating surface symptoms rather than underlying causes, limiting their effectiveness and generalizability in deployment. To tackle this gap, we first present a unified, multi-level framework for characterizing both image and text hallucinations across diverse applications, aiming to reduce conceptual fragmentation. We then link these hallucinations to specific mechanisms within a model's lifecycle, using a task-modality interleaved approach to promote a more integrated understanding. Our investigations reveal that hallucinations often stem from predictable patterns in data distributions and inherited biases. By deepening our understanding, this survey provides a foundation for developing more robust and effective solutions to hallucinations in real-world generative AI systems.