Using extensive case material from a Kleinian perspective, the author describes the need for a more expansive concept of transference. The patient's internal phantasies are continuously interacting and evolving with external reality through the vehicle of projective identification. Thus, the patient is always defending, selectively sharing, and aggressively overusing these psychological conflict states with the analyst. Collectively, the patient's associations that result in a particular state of mind are all part of the wider territory of the transference. Both the direct here-and-now transference with the analyst and the patient's ongoing reports of their experience of life outside of the clinical setting are part of the territory of the transference and need to be considered equally valuable in the working through and interpretive process. Conflict resolution, mourning, and psychic transformation cannot occur without some combination of both throughout the analytic treatment. The territory of the transference introduces a more expansive concept of psychoanalytic interpretation and the introduces the benefits of a more flexible interpretive focus as the territory of the transference shifts or relocates.