My research addresses how children and adults make the distinction between fantasy and reality. The specific goal is to investigate how children make reality status judgments when they encounter novel information. I am assessing the effects of three broad classes of factors: (1) characteristics of the individual child (2) characteristics of the stimulus and (3) effects of the environment. All of these are proposed to affect how children evaluate the reality status of novel entities and events. We also study children's religious cognition.