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A trend towards political polarization and radicalization is observable in many countries across the world. The rise of populist movements and an increasingly heated polarized discourse in the face of mounting environmental and cultural challenges calls for a multifaceted psychological engagement with these phenomena. C.G. Jung's vision of individuation remains crucial for understanding, and possibly mitigating, developments towards radicalization and division within and between cultures. This paper considers classic and contemporary depth psychological ideas regarding individuation, shadow work and cultural complexes, and applies these ideas to current socio-political developments. To further elucidate, Jungian thought is brought into conversation with the findings of a body of literature within social psychology called Terror Management Theory (TMT) which points to unconscious death anxiety as amplifying a sense of separation and otherness, as well as judgment and conflict between individuals and groups. This paper aims to deepen the understanding of current cultural polarization phenomena as well as to collective healing and growth by synthesizing ideas from Jung and TMT research, and to rekindle the fire of individuation as a counter to the trend of polarization, alienation and conflict.