The multiple code theory, based on current work in cognitive science and neuroscience, provides a new context for examining the psychological and biological bases of dissociative processes. As I elaborate here, we need to broaden our understanding of dissociative processes as encompassing not only means of protection against anxiety and stress, but also a broad range of positive functions that underlie courage, productivity, exploration and joy; we also need to broaden the definition of trauma to encompass a wide range of chronic as well as acute events. In this paper, I outline the spectrum of dissociative processes, as these apply in psychic sickness and health, from the perspective of multiple code theory; then examine new views on trauma and its regulation; then discuss briefly the implications of these changes in perspective for treatment of the various types of dissociative processes that clinicians encounter—and experience.