The authors argue that our thinking about psychic reality is challenge
d by research observations of the child during the period of early lan
guage development. The toddler, at the beginnings of propositional spe
ech, expresses the capacity for 'two kinds of psychic reality'. A worl
d of imaginative pretence occurs quite early, and supplements the chil
d's everyday experience. The toddler is not confused by these two expe
riential worlds and, correspondingly, the use of imaginative activity
is strongly supported by caregivers. While in some ways there is a ric
h history of developmental observation and psychoanalytic thinking abo
ut such early imaginative activity, its significance is only now being
appreciated Imaginative reality refers to a process in which the chil
d makes use of what is familiar in the remembered past in order to try
out a world of new possibilities in the present that, to some extent,
are oriented towards the future. Conditional modes of thinking that a
re affectively meaningful are thereby engaged and practised in play. T
he authors present vivid observations that illustrate the early imagin
ative pretence mode of psychic reality. The observations are followed
by a developmental discussion integrating recent research with psychoa
nalytic theory. As would be expected, thinking about early imaginative
reality leads to a variety of new questions for research and clinical
work.