After an organism is touched, various processes need to occur to accurately localize touch on the body. In this review, we examine how tactile misperceptions can provide evidence regarding the functional organization of body representations. First, we propose that tactile detection and localization are serial processes, in contrast to hypotheses that propose separable parallel processes based on patients with numbsense. Second, we discuss how information in primary somatosensory maps project to representations of body size and shape (body form) in order to localize touch on the skin surface. Using this as a framework, we examine how responses after use-dependent plasticity reflect changes in this mapping, and propose potential mechanisms that could be used minimize tactile localization error in conditions with increased sensory uncertainty. Third, we review situations in which our representation of body form is inconsistent with our actual body shape, specifically discussing phantom limb phenomena and alterations of perceived body size and shape in normal individuals. We discuss problems with the traditional remapping hypothesis of referred sensations in amputees, factors that modulate our perception of body size and shape, and how changes in perceived body form influence tactile localization. Finally, we review studies in which brain-damaged individuals perceive touch on the opposite side of the body, and demonstrate how interhemispheric mechanisms can give rise to these anomalous percepts.