The work of Sterba and Strachey is drawn upon to formulate the observing ego in terms of its close relationship to the superego as a whole. The superego proper and ego ideal of both patient and analyst play major roles in development and maintenance of observing ego function, as do superego and ego ideal components implicit in psychoanalytic procedure, set-up, process, and attitude. The crucial juxtaposition of real object/analyst with archaic object/analyst produces an analytically engineered conflict, with observing ego function itself a resultant compromise formation. Conditions that may enhance or hinder observing ego capacity are examined with particular reference to superego functioning.