The author illustrates by means of the analysis of the manifest content of a series of dreams in a borderline patient his hypothesis that in such a patient the mechanism of denial or nonperception is changed to projection or misperception. He points to this as a higher level of integration in these patients and warns that the therapist should not interfere with this development. The countertransference feelings aroused in the therapist by a patient suffering from a narcissistic disorder are usually those of separation anxiety, since the transference is almost exclusively at a preoedipal, mother-child level. These patients frequently leave treatment at the time when the dreams indicate the emergence of homosexual feelings and feelings of being attacked homosexually, but if handled properly they may return for further treatment.