Much research has been carried out to build emotion regulation models for autonomous agents that can create suspension of disbelief in human audiences or users. However, most models up-to-date concentrate either on the physiological aspect or the cognitive aspect of emotion. In this paper, an architecture to balance the Physiological vs Cognitive dimensions for creation of life-like autonomous agents is proposed. The resulting architecture will be employed in ORIENT which is part of the EU-FP6 project eCircus. An explanation of the existing architecture, FAtiMA focusing on its benefits and flaws is provided. This is followed by a description of the proposed architecture that combines FAtiMA and the PSI motivational system. Some inspiring work is also reviewed. Finally, a conclusion and directions for future work are given. © 2008 Springer-Verlag Berlin Heidelberg.