The article discusses the emergence of postmodern trends in American psychoanalysis tracing the evolution of ego psychology from Freud's papers in the twenties to Brenner's revision in his 1982 book “The Mind in Conflict”. It is followed by a presentation of the work of two American analysts Kohut and Loewald, whose ideas were intermediaries between the positivistic point of view and the various postmodern psychoanalytic schools. These schools fall loosely under the rubric of relational psychoanalysis. They all have in common a position which is viewed as a radical departure from classical tradition. This new paradigm has led to a heated controversy as to whether psychoanalysis is a one person or two person psychology with each side claiming to be misunderstood by other. The middle of the road consensus is that although two psychic worlds inevitably mix and influence each other, only one history and one psychology are the object of the analytic scrutiny.