In some neuropsychological disorders, distorted reports seem to fill gaps in people's memory of their past, where people's self-image, history, and prospects are often enhanced. False beliefs about the past compromise both people's capacity to construct a reliable autobiography and their trustworthiness as communicators. However, such beliefs contribute to people's sense of competence and self-confidence, increasing psychological well-being. Here, we consider both the psychological benefits and epistemic costs and argue that distorting the past is likely to also have epistemic benefits that cannot be obtained otherwise, such as enabling people to exchange information, receive feedback, and retain key beliefs about themselves.