noun
reality; consciousness; waking state
Almost always used in the set phrase うつつを抜かす, meaning to be so absorbed in something that one loses touch with reality. Rarely used independently in modern Japanese.
彼はゲームにうつつを抜かしている。
He is so absorbed in video games that he's lost touch with reality.
恋にうつつを抜かすのもほどほどにしなさい。
Don't get too carried away with love and lose sight of what's important.
現実 is the standard modern word for 'reality' and is used in a wide range of contexts. うつつ is archaic and limited to the set phrase うつつを抜かす.
The historical derivation is uncertain. The kanji 現 is conventionally associated with the meaning 'reality' or 'present state'.