Counterfactual conditionals (also contrafactual, subjunctive or X-marked) are conditional sentences which discuss what would have been true under different circumstances, e.g. "If Peter believed in ghosts, he would be afraid to be here." Counterfactuals are contrasted with indicatives, which are generally restricted to discussing open possibilities. Counterfactuals are characterized grammatically by their use of fake tense morphology, which some languages use in combination with other kinds of morphology including aspect and mood.

Counterfactuals are one of the most studied phenomena in philosophical logic, formal semantics, and philosophy of language. They were first discussed as a problem for the material conditional analysis of conditionals, which treats them all as trivially true. Starting in the 1960s, philosophers and linguists developed the now-classic possible world approach, in which a counterfactual's truth hinges on its consequent holding at certain possible worlds where its antecedent holds. More recent formal analyses have treated them using tools such as causal models and dynamic semantics. Other research has addressed their metaphysical, psychological, and grammatical underpinnings, while applying some of the resultant insights to fields including history, marketing, and epidemiology.

An example of the difference between indicative and counterfactual conditionals is the following English minimal pair:

These conditionals differ in both form and meaning. The indicative conditional uses the present tense form "owns" and therefore conveys that the speaker is agnostic about whether Sally in fact owns a donkey. The counterfactual example uses the fake tense form "owned" in the "if" clause and the past-inflected modal "would" in the "then" clause. As a result, it conveys that Sally does not in fact own a donkey. English has several other grammatical forms whose meanings are sometimes included under the umbrella of counterfactuality. One is the past perfect counterfactual, which contrasts with indicatives and simple past counterfactuals in its use of pluperfect morphology:

Another kind of conditional uses the form "were", generally referred to as the irrealis or subjunctive form.

Past perfect and irrealis counterfactuals can undergo conditional inversion:

The term counterfactual conditional is widely used as an umbrella term for the kinds of sentences shown above. However, not all conditionals of this sort express contrary-to-fact meanings. For instance, the classic example known as the "Anderson Case" has the characteristic grammatical form of a counterfactual conditional, but does not convey that its antecedent is false or unlikely.

Such conditionals are also widely referred to as subjunctive conditionals, though this term is likewise acknowledged as a misnomer even by those who use it. Many languages do not have a morphological subjunctive (e.g. Danish and Dutch) and many that do have it do not use it for this sort of conditional (e.g. French, Swahili, all Indo-Aryan languages that have a subjunctive). Moreover, languages that do use the subjunctive for such conditionals only do so if they have a specific past subjunctive form. Thus, subjunctive marking is neither necessary nor sufficient for membership in this class of conditionals.