The author discusses occurrence of psychosis during analytic treatment in patients without known history of previous psychotic breaks. The term 'transference psychosis' is reserved for those psychotic episodes in which the nature of the transference acts as a precipitating factor. It is possible that transference interpretations can reverse these states.

Certain signs may aid the clinician in early recognition of the possibility of psychosis: repeated parapraxes, and consistent and predominant use of psychotic mechanisms. Since the transference itself involves regression, psychotic episodes may occur when there is re-enacted a previous psychotic state, or a previous ego state in which distrust is prominent, or an identification with a psychotic person.

Reider illustrates by a case study the clinical and theoretical features of this phenomenon, and offers interesting comments on certain conceptions of psychotic processes and the treatment of psychoses.