We review and bring up to date Sigmund Freud's neglected conclusions about the authorship of the works of William Shakespeare. Freud was “nearly convinced” by his two readings of the 1920 book by Thomas Looney that first proposed that Edward de Vere, Earl of Oxford used the pseudonym and front man from Stratford. But none of Freud's followers took up his challenge to investigate the implications of de Vere's authorship for the psychoanalytic interpretation of the literary works. Freud had no way of knowing about the “smoking gun” that recently has all but vindicated his opinion: the close connections between the annotations de Vere made in his Bible and biblical allusions in the works of Shakespeare. New discoveries in de Vere's copy of the Psalms have yielded dozens of important new sources for Shakespeare's works.