This chapter explores the semantics of anaphora by highlighting analytical challenges posed by anaphora with unspecific antecedents and reviewing solutions proposed in semantic theory. The main focus is how pronouns establish reference in hypothetical and counterfactual discourse, contrasting descriptive and dynamic approaches in formal semantics. It provides a detailed discussion of dynamic approaches to the challenges in tracking referents across hypothetical and counterfactual discourse contexts. The discussion also connects to philosophical notions of reference and includes a review of psycholinguistic experiments investigating the cognitive mechanisms involved in interpreting anaphora. The chapter is intended to be useful to advanced students of linguistic semantics and researchers interested in reading about the formal semantics of anaphora, or its intersection to theories of language processing.