The Avatar based on mythology is a religious fable.+

In mystical realization, they call Self- Realized person as Avatar.  In spiritualistic realization, they call the Self-realized person as Gnani. A Gnani is the one, who is fully aware of the fact that  the Self is not the form but Self is consciousness, and  he considers his body and his experience of the world as an illusion created out of the Soul or consciousness.

Righteousness, peace, and love for divinity are necessary within the dualistic illusion or Maya. Righteousness, peace, and love for divinity are created out of consciousness. Without consciousness, there is no Righteousness, no peace, and no love. Realizing the consciousness as the ultimate truth is truth realization.

Righteousness, peace, and love for divinity are necessary in practical life within the practical world, but they are no qualifications for truth realization.

A Gnani vision of the world, in which he exists, is, beyond time and space, embracing the Soul, ultimate reality. The universe in which you exist is within the Soul, the Self.

Gnani observes the reality hidden by the dualistic illusion (world) as it is in the midst of the dualistic illusion.

Self- Knowledge is only is true knowledge not the absence of duality. Self -Knowledge cannot destroy the world but it eliminates ignorance and exposes the unreal nature of the mind or universe.

A Gnani is the one who has realized the universe in which he exists is nothing but consciousness. Self-awareness is unique. It cannot be experienced because it is prior to any experience. It is possible only by the realization of the knowledge of the Infinite."

A Gnani sees only unity in diversity, just like a goldsmith estimating the gold in various items of jewelry sees only gold. When one identifies the Self with the form then only the form, time, and space are present. But when one transcends form, time, and space the duality never remains as reality.

The world in which you exist is not separate from the Soul, which is present in the form of consciousness because the world in which you exist is an illusion created out of the consciousness.
Remember:~

The universe is nothing but matter. The matter is merely an illusion created out of the Soul, the Spirit. Just like ice is created out of the water the universe is created out of the Soul, the Spirit, which is present in the form of consciousness. The ice is not different from the water the same way the universe is not different consciousness.

The universe is the Avatara of the Soul, God. The universe is nothing but an illusion created out of God.  The universe ceases to exist without God, which is present in the form of the Spirit or consciousness. Without the universe, God alone exists.

Like an ornament made from gold is Gold, that which is born out of the Spirit (God) is Spirit. Like gold is the permanent thing, in ornaments made of gold, similarly, the universe is born out of the Spirit, is Spirit in its essence.

Meher Baba:~Every one of us is Avatar, in the sense that everyone and everything is everyone and everything, at the same time, and for all time.

Meher Baba: ~ “When the reality appears this ignorance which one thinks as reality becomes unreal. 

Meher Baba says:~    Unless and until ignorance is removed and Knowledge is gained . . . the Knowledge whereby the Divine Life is experienced and lived . . . everything pertaining to the spiritual seems paradoxical . . . God, whom we do not see, we say is real; and the world, which we do see, we say is false. 

In experience, what exists for us does not really exist; and what does not exist for us, really exists.

Meher Baba said: ~ "There is no higher or lower goal. There is only one goal, Self-Realization." 

Meher Baba said: ~ God is your innermost Self. Do not search for God outside of you. Let these words be inscribed in your heart. Nothing is real but God. Nothing Matters but love for God. God is everywhere and does everything. God is beyond us and is everything. God alone is and all else is an illusion. :~Santthosh Kumaar