Much of the information people encounter in everyday life is not factual; it originates from fictional sources, such as movies, novels, and video games, and from direct experience such as pretense, role-playing, and everyday conversation. Despite the recent increase in research on fiction, there is no theoretical account of how memory of fictional information is related to other types of memory or of which mechanisms allow people to separate fact and fiction in memory. We present a theoretical framework that places memory of fiction in relation to other cognitive phenomena as a distinct construct and argue that it is an essential component for any general theory of human memory. We show how fictionality can be integrated in an existing memory model by extending Rubin’s dimensional conceptual memory model. By this means, our model can account for explicit and implicit memory of fictional information of events, places, characters, and objects. Further, we propose a set of mechanisms involving various degrees of complexity and levels of conscious processing that mostly keep fact and fiction separated but also allow information from fiction to influence real-world attitudes and beliefs: content-based reasoning, source monitoring, and an associative link from the memory to the concept of fiction.