The mind does not distinguish reality from unreality.

To it, shadows are ghosts and ghosts are real.

The ego interprets the contents of the mind for its own purpose.

To it, shadows can sometimes be ghosts, depending on the desired outcome and on who is involved.

The Self observes the mind, its contents, the ego, its interpretations, and desired outcomes.

It is the space for all these things without being these things. It stays out of their business, being Truth all the time.