As with many texts of the time, “The Sandman” is concerned with how reality is determined and at what point something imagined might become “real.” Reality and fantasy are often presented in the story as oppositional and are represented by the personalities of Clara and Nathanael, respectively. Clara’s nature is calm and rooted in logical explanation, and her perspective of the circumstances surrounding Nathanael’s experience is deemed more realistic than Nathanael’s own explanation. Nathanael is often emotional, reactive, and prone to extremes, which characterizes his perspective of the world as flawed and primarily fantasy.

While the text begins with a letter written by Nathanael that positions the reader in his mind, the story is ultimately taken over by a narrator who speaks to the reader directly. In this way, reality is established as being outside the mind of Nathanael as readers encounter the narrator as an unbiased party who speaks to the reader as if they are friends. While Nathanael tends to alienate himself from other characters, which also isolates him from the reader, the narrator, Clara, and Lothar all serve as the voice of reason, which align them with the reader.