This paper presents the cases of a four-year-old girl and a seven-and-a-half-year-old boy who had imaginary companions for nine months and five months, respectively. In prelatency children these companions are rooted in the transformation of narcissism involved with object relations and pregenital drive derivatives. In latency children they usually represent superego prestages in the form of auxiliaries, adjuncts, or scapegoats. Betsy's companions provided a defense against fear of maternal abandonment and disappeared when no longer needed. Tom's companions made concrete his wish/fears of peering at his nude mother and disappeared with the introduction of a third companion. Imaginary companions are often defensive, progressive phenomena.