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(from Greek pan, "all"; psyche, "soul"), a philosophical theory asserting that a plurality of separate and distinct psychic beings or minds constitute reality. Panpsychism is distinguished from hylozoism (all matter is living) and pantheism (everything is God). For Gottfried Wilhelm Leibniz, the 17th-century German philosopher and a typical panpsychist, the world is composed of atoms of energy that are psychic. These monads have different levels of consciousness: in inorganic reality they are sleeping, in animals they are dreaming, in human beings they are waking; God is the fully conscious monad.