With his recognition of multiple systems of thought, and his emphasis on the relation of bodily and mental experience, Freud initiated a paradigm shift in the understanding of human inner life. A century later, we are engaged in another major advance within psychoanalytic theory that involves recognition of the inherently relational nature of emotional experience. This paper examines the basis for the relational perspective in current views of psychic organization, as formulated in terms of multiple code theory, supported by research in affective neuroscience, and also emphasizes the therapeutic implications of the new approach. As I discuss, the process of change in psychoanalysis requires an interpersonal space in which the threatening experience can play out, while the associated arousal of painful affect can be managed to an adequate degree. From this perspective, the authenticity of the therapist's emotional engagement is crucial to enabling the explorations and enactments that are required, while avoiding (or minimizing) retraumatization.