In the past two decades, that situation has changed decisively. Imagination is now the subject of intensive empirical research in multiple overlapping disciplines-in, for instance, the evolution of human cognition, developmental psychology, the psychology of self-narratives, the psychology of fiction, and, above all, cognitive neuroscience. We need no longer merely speculate about what imagination is and wonder whether it exists at all as a distinct cognitive apparatus separate from other cognitive mechanisms, or, assuming it exists, whether it serves any adaptive function. We can now say with confidence that the imagination is a neurological reality, that it is lodged in specific parts of the brain, that it consists of an identifiable set of components and processes, that these components and processes have adaptive functions, and that in fulfilling its functions imagination has been a major causal factor in making Homo sapiens the dominant species on earth. The purpose of this chapter is to explain how imaginative verbal artifacts are produced by the imagination and in turn influence the imagination. For convenience, the term "literature" is here used synonymously with the term "imaginative verbal artifacts," but "literature" in this usage should be understood to include also the oral productions of non-literate peoples. The main forms of literature are poems, plays, and stories, but reflections on literature can often be extended to other media such as historical narratives, imaginative essays, songs, film, opera, cartoons, or video games. In the usage intended here, "literature" implies no distinction between