This paper reviews the current status of the relationship between psychoanalysis and psychoanalytic psychotherapy and notes that, since the 1950s, the scope of indications for psychoanalysis has widened so that it has absorbed some of the clinical territory previously assigned to psychoanalytic psychotherapy. Simultaneously, these developments have brought changes in therapeutic technique and more blurring of the boundaries between these two approaches. By examining the manifestations of transference and their management both in psychoanalysis and in psychoanalytic psychotherapy, the author offers the view that these modalities of treatment, though linked in multiple ways, are basically different and that each has its preferential indications.