Memory is the primary constituent of our identity. Unfortunately, memories are not always a true representation of reality. So called False Memories are cases in which memories are distorted or otherwise incongruent with reality. Three cases of False Memory will be reviewed namely source-monitoring errors, suggestibility and bias. Explaining False Memory, however, within the classical framework of memory systems is inadequate, so a different perspective is needed. The Complementary Learning System in combination with Spike Dependent Plasticity, Long Term Potentiation and the philosophical background of Dynamic Systems provides a deeper insight in to the principles of memory and the phenomenon of False Memory.