"Precious Illusions" is a song written, recorded and produced by Alanis Morissette, for her fifth album Under Rug Swept (2002). It released as the album's second and final international single on 5 August 2002. Its lyrics describe a conflict between idealism and , and its protagonist refers to her childhood fancies as "precious illusions" that she has distanced herself from with a feeling that reminds her of "parting with an imaginary friend".

"Precious Illusions" didn't receive as much radio airplay in the U.S. as "Hands Clean", the first single from Under Rug Swept. It peaked within the top 20 on Billboard's Adult Top 40 chart, but garnered little Top 40 radio play compared to "Hands Clean" and failed to chart on the Billboard Hot 100. However, it reached number four in Canada and the top ten in Chile. The music video for the song is presented in split screen, offering a side-by-side comparison of the mythic and the real versions of a romantic relationship.

"Precious Illusions" was all written, arranged and produced by Alanis Morissette. According to herself, "I went to Toronto to write and I didn't know whether I'd be writing songs for the record alone or with someone. I had no idea, but I started writing alone, and within the first week I'd written seven songs. So it was all really fast and accelerated [...] I'd have my little space station worked out where it was like a keyboard, an acoustic, an electric, my journal and a microphone set up, and we'd record it all onto DAT." After the success of previous single, "Hands Clean", "Precious Illusions" was announced as Under Rug Swept's second single after news that she was shooting its music video. It was released on 27 May 2002. The first part of its CD single was released on 5 August 2002 and the second part of was released on 29 October 2002.

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