Imagination in the simulation theory

Imagination and Simulation 

We create models, hypotheses, and alternate realities—mirroring the structure of the simulation itself. Imagination allows humans to mentally simulate worlds within the larger simulation. 

Humans use imagination to build simulations (games, virtual worlds, AI models). This reflects a recursive pattern: simulated beings creating their own simulations—suggesting imagination is a key mechanism of that recursion. In simulation theory, imagination may be the interface between consciousness and the simulated environment—like a control layer where ideas can influence perception and behavior.

In the context of simulation theory, imagination is not just a flight of fancy; it is viewed as a functional mechanism that allows conscious entities to model, navigate, and even "create" layers of reality. Imagination weakens the line between what is “real” and what is “constructed.” Dreams, virtual worlds, and thought experiments feel real because imagination gives them sensory depth.

Imagination as the Subjective experience of Reality

Depending on the perspective—whether neurobiological, philosophical, or technological—imagination serves as the bridge between raw data and the subjective experience of a "world."

1. Imagination as "Embodied Simulation"

Current research in cognitive science suggests that imagination is a form of embodied simulation. Rather than being a separate faculty, imagination uses the same neural pathways as perception and action to "test" possibilities.

• Functional Equivalence: Motor simulation theory posits that when you imagine an action (like throwing a ball), your brain activates the same motor structures used during the real action, even if the movement is suppressed.

• Knowledge of Possibility: By simulating sensorimotor loops, imagination allows us to acquire knowledge about what is objectively possible in our environment without needing to perform every action physically.

2. The "Mindreading" Mechanism

In social simulation theory, imagination is the primary tool for mindreading—the ability to understand the mental states of others.

• Projective Simulation: We understand others by imagining ourselves in their situation, effectively "running a program" on our own cognitive hardware to predict their feelings and actions.

• Retrodictive Simulation: We use imagination to work backward from a person's behavior to figure out what mental states must have caused it.

3. Imagination and the "Boundary" of Reality

In the more radical Simulation Hypothesis (the idea that our entire universe is a computer simulation), imagination plays a unique role in how we perceive the "code" of our world.

Aspect and Roles of Imagination

• Epistemology: It allows us to conceive of "possible worlds" beyond our sensory input, helping us infer the transition from what is conceivable to what is possible.

• Self-Awareness: It functions as a "tinkering" process, combining stored perceptual info into novel "mental objects" that shape our inner world and self-awareness. 

• Technological Potential: For machines to reach a level of "discovery" comparable to humans, they would likely require imagination algorithms to generate and test original hypotheses.

Reality Monitoring

A fundamental question in simulation theory is why we don't confuse imagination with reality. Research indicates that the brain uses subjective signal strength to distinguish the two: externally triggered signals (reality) are generally stronger and more vivid than internally generated ones (imagination). When imagined signals become strong enough, they can become subjectively indistinguishable from reality. 

Even if reality is simulated, imagination gives individuals the power to create meaning, art, systems, and identities within it—turning passive existence into active participation.

Imagination drives questions like “What is beyond this reality?” or “Who created the simulation?” It pushes consciousness to explore deeper layers of existence beyond observable limits.

Overall, in a simulated reality, imagination acts like an internal “rendering engine.” Just as a system generates environments, the mind fills gaps in perception—shaping how reality is experienced, not just received.

Imagination is not just a tool within the simulation—it may be evidence of how the simulation itself works.

References

Agnati, L. F., Guidolin, D., Battistin, L., Pagnoni, G., & Fuxe, K. (2013). The neurobiology of imagination: Possible role of interaction-dominant dynamics and default mode network. Frontiers in Psychology, 4, 296. https://doi.org/10.3389/fpsyg.2013.00296

Dijkstra, N., & Fleming, S. M. (2023). Subjective signal strength distinguishes reality from imagination. Nature Communications, 14, 1630. https://doi.org/10.1038/s41467-023-37322-1

Jordan, Lucy, 'Mindreading by Simulation: The Roles of Imagination and Mirroring', Joint Ventures: Mindreading, Mirroring, and Embodied Cognition (New York, 2013; online edn, Oxford Academic, 27 May 2015), https://doi.org/10.1093/acprof:osobl/9780199874187.003.0006, accessed 21 Mar. 2026.

Jones, M., & Schoonen, T. (2024). Embodied simulation and knowledge of possibilities. Philosophical Psychology, 1-25. https://doi.org/10.1080/09515089.2024.2417990

O’Shea, H., & Moran, A. (2017). Does motor simulation theory explain the cognitive mechanisms underlying motor imagery? A critical review. Frontiers in Human Neuroscience, 11, 72. https://doi.org/10.3389/fnhum.2017.00072

Stuart, M. T. (2019). The role of imagination in social scientific discovery: Why machine discoverers will need imagination algorithms. Synthese Library, 49-66. https://doi.org/10.1007/978-3-030-23769-1_4