When the narrative acquires a life of its own, it becomes Gods.
There is something deeper than simply "people need fairy tales (and therefore religions)."
The most powerful narratives are not necessarily the truest ones. They are the ones that recruit large amounts of emotional energy and convert them into action. Evolution does not care whether a narrative is philosophically accurate. It cares whether organisms carrying that narrative survive, cooperate, reproduce, persist, and maintain social cohesion. This creates an interesting tension.
A narrative that is obviously fictional has limited power. If I tell myself every morning that I am secretly the emperor of Mars, the story quickly collapses because my nervous system cannot fully invest in it. A narrative becomes powerful when it occupies a strange middle ground. It is not fully verifiable, but it is not obviously false either. For example religions have enough ambiguity that emotional investment can flow into it.
Love is a perfect example. From a biological perspective, romantic love is a collection of evolved mechanisms related to pair bonding, attachment, reproduction, and cooperation. Yet nobody experiences it that way. People experience it as destiny, meaning, completion, soulmates, transcendence, and profound significance. The narrative dramatically exceeds the biology but that excess is precisely what makes it effective. If human beings experienced mating merely as genetic replication, fertility rates would probably be much lower than they already are. Instead, evolution built systems that make another person appear uniquely valuable and irreplaceable. The narrative acquires a life of its own.
The same thing happens with nation, vocation, family, religion, justice, and even personal identity. The strongest narratives seem to possess a peculiar property. They cease to feel like narratives. They become reality itself.