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Psychotic symptoms are a prevalent yet underrecognized feature of borderline personality disorder (BPD), with studies estimating their occurrence in up to 60% of patients. Despite their clinical and theoretical relevance, these phenomena are marginalized in contemporary diagnostic frameworks, which emphasize affective instability and interpersonal dysfunction while minimizing impairments in reality testing. We review the historical roots of BPD as a schizophrenia-like condition and examine the phenomenology of hallucinations and delusions in this population. Drawing on psychoanalytic object-relations theory, particularly the contributions of Otto Kernberg and John Gunderson, we propose that psychotic symptoms in BPD serve an object-restitutive function, preserving internal relational continuity amid psychic disintegration. We argue that these symptoms are neither incidental nor epiphenomenal but reflect core features of the disorder that warrant greater attention in diagnosis and treatment. Improved clinical recognition and theoretically informed interventions are essential to addressing this neglected dimension of BPD.