Our subjective sensory experiences are thought to be heavily shaped by interactions between expectations and incoming sensory information. However, the neural mechanisms supporting these interactions remain poorly understood. By using combined psychophysical and functional MRI techniques, brain activation related to the intensity of expected pain and experienced pain was characterized. As the magnitude of expected pain increased, activation increased in the thalamus, insula, prefrontal cortex, anterior cingulate cortex (ACC) and other brain regions. Pain-intensityrelated brain activation was identified in a widely distributed set of brain regions but overlapped partially with expectation-related activation in regions, including the anterior insula and ACC. When expected pain was manipulated, expectations of decreased pain powerfully reduced both the subjective experience of pain and activation of pain-related brain regions, such as the primary somatosensory cortex, insular cortex, and ACC. These results confirm that a mental representation of an impending sensory event can significantly shape neural processes that underlie the formulation of the actual sensory experience and provide insight as to how positive expectations diminish the severity of chronic disease states.functional MRI ͉ mental imagery ͉ placebo ͉ psychophysical T he experience of a sensory event is highly subjective and can vary substantially from one individual to the next (1). Much of this individual variation may result from the manner in which past experience and future predictions about a stimulus are used to interpret afferent information. Consistent pairing of environmental cues with sensory events provides a learned historical context that is critically important for the prediction and processing of future sensations (2, 3). However, expectations that are inconsistent with sensory information can dramatically alter the sensory experience. In the case of pain, positive expectations can powerfully reduce the subjective experience of pain evoked by a consistently noxious stimulus, whereas negative expectations may result in the amplification of pain (4-7). Furthermore, expectations in which there is a high degree of certainty as to the outcome may activate descending control systems to diminish pain, whereas expectations associated with uncertain outcomes may amplify pain (8).The prefrontal cortex (PFC), anterior insula, and anterior cingulate cortex (ACC) are activated during the anticipation of pain, but their exact role in pain expectation remains poorly delineated (9-12). Moreover, the neural mechanisms by which conscious predictions about the magnitude of pain influence the experience of pain remain poorly understood and largely unexploited in the treatment of pain. At the most fundamental level, expectation-induced modulation of pain must necessarily engage three neural processes. First, an active mental representation of an impending event must be formulated by incorporating past information with the present context and future implica...