In this chapter, I suggest a theoretical framework that contextualises and develops my core arguments regarding found footage horror films; that the diegetic camera prompts specific imaginings from the viewer; and that it can affect the viewer’s empathy with characters, if not his or her feelings of allegiance. First, I theorise the diegetic camera as a distinct entity, one that is different from traditional formulations of the camera in film studies. Then, I move on to issues of narration and enunciation which become central to analysing the focus films in subsequent chapters of the book. I argue that diegetic camera films are attempting to create a very specific type of realism; one that is based on the viewer’s perception of other media forms such as documentary and home video. In this chapter, I also explore debates surrounding the notion of realism as these are important to my conception of mediated realism, and I offer here an overview of some of the key theories of realism that inform my own use of the term.