This paper explores aspects of the nature of unconscious fantasy as well as the relationship between the concepts of fantasy and transference. A fundamental distinction is drawn between fantasy as an activity and fantasy as a product of that activity. The capacity for fantasy activity, it is argued, is essential to human life, precedes, and is requisite for, concept acquisition and formation and, thereby, for the development of language and other forms of symbolic representation. Transference is articulated as a subclass, that is, a certain kind of product of fantasy activity. In the course of the discussion, forms of empiricist and phenomenological reductions relevant to characterizations of fantasy and transference within psychoanalytic models are delineated. A common psychoanalytic assumption concerning the human potential to have some form of direct access to aspects of the world including self and others is examined in the course of the discussion, and, pertinent methodological premisses are explored.