The present study examined whether individuals with full-blown memories of highly implausible events are prone to commit source monitoring errors. Participants reporting previous-life memories and those without such memories completed a false fame task. This task provides an index of source monitoring errors (i.e., misclassifying familiar non-famous names as famous names). Participants with previous-life memories had a greater tendency to judge the names of previously presented non-famous people as famous than control participants. The two groups did not differ in terms of correct recognition of new non-famous names and famous names. Although dissociation, cognitive failures, sleep-related experiences, depressive symptoms, and signs of psychological distress were all significantly higher in participants with previous-life memories than in controls, these variables did not predict the false fame illusion.