The Illusion of Sentience in Virtual Environments Mel Slater University College London UK A number of experimental studies have been carried out in which people are brought into confrontation with entirely virtual characters within an immersive virtual environment. These experiments have been designed to expore the extent to which virtual environments might be used in psychological therapy for anxiety conditions that involve social situations - in particular the social phobias and paranoid ideation. The results suggest that people do respond to virtual characters as if they were sentient. The evidence is from questionnaire data and recorded physiological responses, as well as from debriefing interviews. This talk will review this evidence, and also pose the question of why this response occurs, even though the virtual characters are typically at low representational and behavioural fidelity.