Lyric discussion by pdxwastrel 

Mnementh was on the right track I think. Shiloh is a Hebrew word that has been translated in different ways. A few include: "His gift" "Oh! May it be." and "He whose it is" . It was used in Genesis and is sometimes interpreted as another name for the Messiah. In the Christian context, this would be another name for Jesus. However, Neil Diamond is Jewish(although his current wife is Christian). Still, the calling of the 'imaginary friend' could be taken as saying a prayer or some such.

I think this makes sense considering the grief he expresses at lost love. It reminds me of a line from Yehuda Amichai's "Love Gifts":

You enabled me to live for a few months without needing a religion

I'm not saying that either was influenced by the other, but that many people who have lost a loved one in one way or another will often turn to religion for comfort. Neil Diamond has spoken from time to time of his spirituality being an influence on his music. I think it's somewhat hard to accept a sane grown man asking for an actual imaginary friend to return. Perhaps the song is asking for a return to the spiritual comfort he had when he was a child, rather than the imaginary friend itself.

He was a lonely child who didn't have any friends, so he decided to find/invent a friend in his own mind to play with, and named him Shiloh. When he got older he fell in love with a "young girl with fire" who made him feel like he could fly, and she made him smile. After a while she decided that she had other plans, and had to go, saying that she knows that he'll understand. In his grief over his broken heart, he calls back his childhood imaginary friend "Shilo when I was young, I used...

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