Given that children are told stories about real as well as pretend protagonists, how do they differentiate between them? Previous research indicates that children's understanding of historical versus fictional stories develops between ages 3 and 5 (Corriveau et al., 2009. Cognition, 112, 225; Woolley and Cox, 2007. Developmental Science, 10, 681). Across two experiments (N =134), we asked if children's developing understanding of representation is related to their ability to differentiate between historical and fictional stories. Controlling for age and verbal ability, children's ability to correctly differentiate such stories is related to their developing understanding of false beliefs and false signs but not false photographs.