Many parents delight in their child's imaginary companion (IC) as evidence of a lively imagination and creative mind. At the same time, parents wonder if the ICs might be a sign that the child is in emotional distress or has difficulty communicating with other children. Here, Taylor provides an informed look at current thinking about pretend friends, dispelling many myths about them. ICs are common, and the children who have them tend to be less shy than other children. They are also better able to focus their attention and to see things from another person's perspective. Discusses children's belief in Santa, their dreams, and their uncertainty about the reality of TV characters. Addresses how children express their own feelings by attributing them to their IC.