Tendon vibration has long been known to evoke perception of illusory movements through activation of muscle spindle primary endings. Few studies, however, have dealt with the cortical processes resulting in these kinaesthetic illusions. We conceived an fMRI experiment to investigate the cortical structures taking part in these illusory perceptions. Since muscle spindle afferents project onto different cortical areas involved in motor control it was necessary to discriminate between activation related to sensory processes and activation related to perceptual processes. To this end, we designed and compared different conditions. In two illusion conditions, covibration at different frequencies of the tendons of the right wrist flexor and extensor muscle groups evoked perception of slow or fast illusory movements. In a no illusion condition, covibration at the same frequency of the tendons of these antagonist muscle groups did not evoke a sensation of movement. Results showed activation of most cortical areas involved in sensorimotor control in both illusion conditions. However, in most areas, activation tended to be larger when the movement perceived was faster. In the no illusion condition, motor and premotor areas were little or not activated. Specific contrasts showed that perception of an illusory movement was specifically related to activation in the left premotor, sensorimotor, and parietal cortices as well as in bilateral supplementary motor and cingulate motor areas. We conclude that activation in motor as well as in parietal areas is necessary for a kinaesthetic sensation to arise.