The exclusion of thinking fr arn recent studies of sleep mentation has hind
ered a full appreciation of how cognitive activity differs across the stare
s of waking and sleep. To overcome this limitation, this study investigated
thoughts and hallucinations using experience sampling, home-based sleep-wa
ke monitoring, and formal analyses of the psychological data. The prevalenc
e of thoughts decreased gradually from caking through sleep onset and non-R
EM sleep, to reach its nadir in REM sleep, whereas hallucinations increased
sharply across these states. Furthermore, multiple occurrences of hallucin
ations but not of thoughts increased significantly from sleep onset through
non-REM sleep, to a peak in REM sleep. This reciprocity in thoughts and ha
llucinations might reflect a progressive shift from high to low aminergic-t
o-cholinergic neuromodulatory ratios across wake-sleep states, accompanied
by an array of changes in the regional activation patterns of the brain.