The relation between early fantasy/pretense and children’s knowledge about mental life was examined in a study of 152 3- and 4-year-old boys and girls. Children were interviewed about their fantasy lives (e. g., imaginary companions, impersonation of imagined characters) and were given tasks assessing their level of pretend play and verbal intelligence. In a second session 1 week later, children were given a series of theory of mind tasks, including measures of appearance-reality, false belief, representational change, and perspective taking. The theory of mind tasks were significantly intercorrelated with the effects of verbal intelligence and age statistically controlled. Individual differences in fantasy/pretense were assessed by (1) identifying children who created imaginary characters, and (2) extracting factor scores from a combination of interview and behavioral measures. Each of these fantasy assessments was significantly related to the theory of mind performance of the 4-year-old children, independent of verbal intelligence.