Motor simulation theory (MST; Jeannerod, 2001) purports to explain how various action-related cognitive states relate to actual motor execution. Specifically, it proposes that motor imagery (MI; imagining an action without executing the movements involved) shares certain mental representations and mechanisms with action execution, and hence, activates similar neural pathways to those elicited during the latter process. Furthermore, MST postulates that MI works by rehearsing neural motor systems off-line via a hypothetical simulation process. In this paper, we review evidence cited in support of MST and evaluate its efficacy in understanding the cognitive mechanisms underlying MI. In doing so, we delineate the precise postulates of simulation theory and clarify relevant terminology. Based on our cognitive-level analysis, we argue firstly that the psychological mechanisms underlying MI are poorly understood and require additional conceptual and empirical analysis. In addition, we identify a number of potentially fruitful lines of inquiry for future investigators of MST and MI.