This article is an attempt to situate imagination within consciousness complete with its own pre-cognitive, cognitive, and meta-cognitive domains. In the first sections we briefly review traditional philosophical and psychological conceptions of the imagination. The majority have viewed perception and imagination as separate faculties, performing distinct functions. A return to a phenomenological account of the imagination suggests that divisions between perception and imagination are transcended by precognitive factors of sense of reality and non-reality where perception and imagination play an indivisible (...) role. In fact, both imagination and perception define sense of reality jointly according to what is possible and not possible. Absorption in a possible world depends on the strengths of alternative possibilities, and the relationship between core and marginal consciousness. The model may offer a parsimonious account of different states and levels of imaginal consciousness, and of how “believed-in imaginings” develop and become under some circumstances “lived-in experiences.”. (shrink)