The interpretation of ironic utterances is a process that poses challenges for standard models of common ground: ironic utterances appear either false or infelicitous if interpreted literally and they might require the listener to entertain multiple models of CG simultaneously to be able to appreciate the ironic meaning of the utterance. In Project C4, we ask how the ability to entertain alternative CGs develops in ontogeny and whether it involves co-maturation of the Theory of Mind and counterfactual reasoning. We combine an experimental approach with probabilistic modeling to formulate a cognitively-grounded theory of CG that is able to handle non-literal language.