This article suggests a new theory of narcissism as an ongoing, lifelong process, necessary to shape and define reality. The concept of narcissism is explored within the Freudian psychoanalytic theory and the philosophy of Socrates and Plato. The two theories seem to agree that the majority of human experience is unconscious, experienced reality is perceptual and self-created and the primal force of life is an unconscious need to return to a former state of being and state of Wholeness. Perception of reality is seen to be the outcome of a projection outwards of internalized perceptual schemes based on the interplay of Eros and Death, traced in the parental relationships and reinforced throughout life. This article suggests that reality is dynamically interwoven with the concept of narcissism and their purpose is twofold: (a) to facilitate individuation and provide a foundation to understand the world and (b) to make possible the acquisition of mastery over life and knowledge of oneself as the creator of the experience.