This chapter opens with an account of the A-edition first Paralogism. After refining the account of Transcendental Illusion given in Chapter 1, it proceeds to examine Julian Wuerth’s rival interpretation of the first Paralogism and, in connection with that interpretation, Kant’s notion of the ‘substantiale’. The chapter discusses a problem with Kant’s characterization of a paralogism in terms of ‘transcendental’ and ‘empirical’ uses of a category. Finally, it considers the three ways in which a paralogism can be diagnosed, namely, either as an invalid argument with known premises or as a valid argument with at least one unknown premise (a ‘paralogism’ now only by courtesy) or, finally, as a valid argument with known premises which is ‘false with respect to form’ because its proponent commits the fallacy of overestimating the significance of what has been proved. This last, it argues, is the diagnosis Kant offers of the A-edition first paralogism.