The author uses a detailed clinical example to illustrate how reality testing can create rather than foreclose opportunities for analytic investigation. He proposes that authentic analysis of transference within the treatment relationship requires close and explicit attention to be paid to considerations of reality, but in a way that does not require the patient to defer to the analyst's view. The author reconsiders certain conceptions of a special psychoanalytic reality, of regression in clinical analysis, and of the nature of free association, suggesting that they tend to discourage the realism necessary to effective psychoanalytic work. In this context, he underlines the importance of ongoing reference to therapeutic outcome as an aspect of reality, and reflects upon the impact of the reality of the analytic treatment setting and the question of termination.