Three studies support the hypothesis that observers’ impressions of actors reflect not only what actors do but also what they can easily be imagined doing. Participants in Studies 1 and 2 observed a 10-year-old boy take a math test in a context in which the incentive to cheat and the constraints against cheating varied. When the incentive to cheat was high but the likelihood of getting caught was also high, observers perceived a target who resisted the temptation to cheat as less honest than the average boy. This effect was not found when the incentive to cheat was low, which suggests that its occurrence under high temptation resulted from observers in that condition generating the counterfactual thought that the target would have cheated had the likelihood of detection been low. Study 3 further supported the link between spontaneous counterfactual thought and inferences of dishonesty. The implications of the counterfactual correspondence bias are discussed.