The author addresses the role of autonomy in interactive animated characters. He argues that even a small amount of autonomy can lift what is already a great interactive character into a new dimension. He shows how different levels of autonomy may be appropriate for different types of characters. He then argues that autonomy, intentionality, variability and adaptation are all critical components in creating the illusion of life in interactive characters. He reviews current work in the field and proposes a number of practical applications for autonomous characters in both interactive and non-interactive animation.