Fuzzy-trace theory (FTT) is a theory of cognition originally proposed by Valerie F. Reyna and Charles Brainerd to explain cognitive phenomena, particularly in memory and reasoning.
FTT posits two types of memory processes (verbatim and gist) and, therefore, it is often referred to as a dual process theory of memory. According to FTT, retrieval of verbatim traces (recollective retrieval) is characterized by mental reinstatement of the contextual features of a past event, whereas retrieval of gist traces (nonrecollective retrieval) is not. In fact, gist processes form representations of an event's semantic features rather than its surface details, the latter being a property of verbatim processes.
The theory has been used in areas such as cognitive psychology, human development, and social psychology to explain, for instance, false memory and its development, probability judgments, medical decision making, risk perception and estimation, and biases and fallacies in decision making.
FTT can explain phenomena involving both true memories (i.e., memories about events that actually happened) as well as false memories (i.e., memories about events that never happened).