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The paper is based on the previously formulated theory that there are two separate developmental streams of narcissism: (1) that part of the child's narcissism which is retained in an archaic self—the 'grandiose self'; and (2) that part of the child's narcissism that has been assigned to an archaic object—the 'idealized parent imago'. In a healthy childhood the perfection and power of the grandiose self change into normal self-esteem; and the perfection and power of the idealized parent imago lead through re-internalization to the idealization of the superego. Early disturbances interfere with this wholesome development and lead to a variety of narcissistic fixations and structural defences. In psychoanalysis, however, specific narcissistic transferences establish themselves, and bring about the remobilization of the archaic narcissistic structures. The ensuing working-through process leads to the gradual transformation of these archaic structures and to their integration with the mature psyche. The systematic therapeutic revival of the idealized parent imago is called 'idealizing transference'. The systematic therapeutic reactivation of the grandiose self is referred to as 'mirror transference' because the analyst is here of significance to the patient only as an approving 'mirror' of his narcissistic display. The reactivation of more archaic forms of the grandiose self leads to the experience that the analyst is like the patient ('twinship' or 'alter-ego transference') or that the self of the patient includes the analyst ('merger'). Some of the specific resistances, some details of the working-through process and the tactics of the treatment are discussed and