This paper examines the problem of how we distinguish, phenomenologically, sensory imagination from perception. I suggest that philosophical discussions of this issue have been hampered by a surprising failure to carefully distinguish what is involved in our awareness of being in a state of imagining, from our awareness of the imagistic content. Rectifying this allows us, first, to gain a clearer insight into the problem at issue, and it also allows for a new interpretation of the so-called ‘Perky effect’, whereby subjects supposedly confuse imagining for perceiving. Second, it allows us to give a more nuanced account of reality monitoring and of the metacognitive mechanisms underpinning the phenomenal features we rely upon to distinguish state from content.