意味：
to be happy based on false hope or expectation, which will never be fullfilled
日本語のニュアンスとしては、
- 神頼み
- 取らぬ狸の皮算用
といったところ
ex.
Ram is confident that he will get a big salary raise this year, but knowing the company’s financial health, I think he’s living in a fool’s paradise.
I’m afraid that Natasha’s martial happiness is a fool’s paradise, there are rumors that her husband is unfaithful.
The stock market is headed for a trouble and anyone who thinks to recover their funds soon, is living in a fool’s paradise.
They were living in a fool’s paradise, refusing to accept that they were in debt, until the bank ceased their property.
John lived in a fool’s paradise, looking forward to a promotion, which he would never get.
Peter always lived in a fool’s paradise thinking, one day Maria will marry him.
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