Previous research has noted a robust correlation between dissociation and schizophrenia-like symptoms. One way to interpret the relationship between dissociation and schizotypy is to assume that it is an artifact of fantasy proneness. In the present study, 152 undergraduates completed measures of dissociation, schizotypy, and fantasy proneness. Dissociative tendencies were found to be related to the full range of schizotypal features. Regression analysis showed that schizotypy still contributed to the prediction of dissociative tendencies when variance related to fantasy proneness was extracted. These results indicate that the close connection between dissociation and schizotypy cannot be interpreted in terms of an artifact produced by fantasy proneness. Thus, the overlap between dissociation and schizotypy warrants systematic study.