Well, 'Dances with Wolves' has roots in true history, but it's not a strict documentary. It weaves fictional elements into a backdrop that draws from real-life circumstances.
Yes, 'Dances with Wolves' is based on a true story. The main character, John Dunbar, represents a real - life figure in a sense. His experiences among the Sioux tribe were inspired by the historical interactions between Native Americans and settlers. However, like most movies based on true events, some fictional elements were added for the sake of storytelling.