Children in the United States come to distinguish historical from fictional story figures between the ages of 3 and 5 years, guided by the plausibility of the story events surrounding the figure (Corriveau, Kim, Schwalen, & Harris, 2009; Woolley & Cox, 2007). However, U.S. children vary in their reactions to stories that include fantastical events. Secular children with no religious education think of such stories and their protagonists as fictional, whereas children who have had a religious education are more prone to think of them as historically true. In the current studies, we asked if a sample of children in Iran who are regularly exposed to religious narratives in their daily lives resemble religious children in the United States. As expected, Iranian 5- and 6-year-olds systematically categorized figures in realistic stories as real, but they were also prone to think of figures in fantastical stories as real. We suggest that children's willingness to conceive of figures in fantastical stories as real is explained by their exposure to religious narratives alleging that miracles have actually happened.