In my daughter's diagnosis report, it says that she comes across as being confused between fantasy and reality. However, I don't think she is confused at all. She talks about Doctor Who as if he is one of her friends, at times. However, she's also very clear about him being a character in a TV show and knows various actors play him. She knows the names of the actors, so she is sure there's a difference. At her assessment, she spoke about Slimer being in the corner of the room. However, if you speak to her about it, she knows it's in her head and she can very easily take the image away (she's doesn't hallucinate and she's not frightened by what she sees). She is very visual and can project images into the real world; this is a gift, not something to be concerned about. She loves fantasy and has a very active imagination. She believes in Santa Claus and the Tooth Fairy, but most 6yr olds do. But, for such a young child, I think she's strangely very aware of the real world too.
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"We act as though comfort and luxury were the chief requirements of life, when all we need to make us really happy is something to be enthusiatic about." Charles Kingsley