To the view of internalization as fantasy, there is counterposed the view of internalization as process. The philosophical roots and basic argument of the 'fantasy' view are evaluated, particularly in reference to the position of metaphorical terms in psychoanalytic theory. Especially confusing is the literal interpretation of metaphors of spatialization distinguishing the inner dimensions of psychic experience from external referents. The persistent theoretical need is to translate metaphorical usage into meaningful and consistent theoretical terms. The organization of introjects cannot be reduced to memory elements, object representations, or fantasy products. Internalization as process refers to a series of real psychological events whose specific delineation and description has not been accomplished.