Imagine That is a movie starring Eddie Murphy as Evan Danielson, a divorced father of a seven year old daughter named Olivia. Evan also works as a stockbroker for a prestigious firm, which has decided to bring in some new talent to help win over some big accounts. The new talent is a man who professes to have a Native American ancestry. He usually speaks in riddles using references to folklore associated with Native American beliefs. Evan feels his job is threatened by this man and goes about trying to find new ways to outshine this strange man's methods for picking good stocks.
Like most divorced fathers, Evan gets his daughter on weekends and on occasional days during the week. Olivia often tries to get her father's attention while she visits at his place, but he is usually too wrapped up in his work to spend time with her. Olivia also has some imaginary friends who happen to live in a kingdom where they are princesses. She can journey to their kingdom by placing her beloved blanket over her head and walking across the imaginary bridge guarded by a dragon. Even discovers that Olivia somehow receives inside information pertaining to the companies and stocks he is dealing with. The information comes from her imaginary friends who speak to Olivia using terms she would understand which often need to be deciphered by her father.
As Evan becomes convinced his daughter really does have access to some type of otherworldly beings who can give her the information he needs, he decides to join her in her play so he can see the princesses himself. While he never really sees them, he does end up spending a lot of time getting to know his daughter. In the process he also becomes obsessed with needing the blanket to receive the information he wants for choosing stocks. Ultimately, Evan gets a new perspective on his life and his role as a father, which he usually took for granted.