Responding to the well-known perplexities contained in the phenomenon of hypnosis, the author attempts a theoretical formulation of the hypnotic situation. He approaches the problem by trying to differentiate hypnosis from being 'bogged down' by explaining it as a transference phenomenon. What underlies the state of transference certainly explains many of the features of hypnosis. Unfortunately, instead of turning to these underlying factors, such as alteration of ego state and surrender of ego functions, the author resorts to operational, descriptive formulations, not particularly controversial in themselves. Good clinical examples of the puzzling phenomena of the hypnotic state are given.