The author traces the development of Freud's conception of the nature and significance of transference in the psychoanalytic process. He notes that from 1910 onward, Freud was convinced that the analysis of the transference is the sole factor involved in the therapeutic action of psychoanalytic treatment, despite the fact that, late in his career, he observed and described the power of reconstruction to be effective as well. The author agrees with those analysts who contend that, while the analysis of the transference is essential to proper analytic technique, it is not the only agent of therapeutic impact.