Based on the testimony of others, children learn about a variety of figures that they never meet. We ask when and how they are able to differentiate between the historical figures that they learn about (e.g., Abraham Lincoln) and fantasy characters (e.g., Harry Potter). Experiment 1 showed that both younger (3- and 4-year-olds) and older children (5-, 6-, and 7-year-olds) understand the status of familiar figures, correctly judging historical figures to be real and fictional figures to be pretend. However, when presented with information about novel figures embedded in either a realistic narrative or a narrative with obvious fantasy elements, only older children used the narrative to make an appropriate assessment of the status of the protagonist. In Experiment 2, 3-, and 4-year-olds were prompted to judge whether the story events were really possible or not. Those who did so accurately were able to deploy that judgment to correctly assess the status of the protagonist. (Contains 1 table and 8 figures.)