Chapter 10 is an introduction to contemporary theory and empirical work inspired by psychoanalytic theory. The authors begin by reviewing the postulates of contemporary psychoanalysts, which include the postulates that the unconscious plays a large role in life, although it does not have the ubiquitous influence that Freud once held.

Next, the authors present another case of recovered memories, but one that ends with the legal determination that the memory is "false," induced in the patient by her therapist. The authors then review recent empirical work documenting the ease with which false memories can be encouraged or implanted. The authors next contrast contemporary views on the cognitive unconscious with classical psychoanalytic views of the motivated unconscious. Next the authors review ego psychology, another major modification to classical psychoanalysis that turns on a shift of emphasis from the id to the ego. Erik Erikson was a leader in the field of ego psychology. Erikson argued that personality development continues throughout adulthood and that the conflicts at each stage were primarily social in nature rather than sexual in nature. Erikson's eight stages were trust vs. mistrust, autonomy vs. shame and doubt, initiative vs. guilt, industry vs. inferiority, identity vs. role confusion, intimacy vs. isolation, generativity vs. stagnation, and integrity vs. despair.

Next, the authors review the work of Karen Horney, who reinterpreted much of classical psychoanalysis through a feminist lens. The authors then discuss the contemporary psychoanalytic emphasis on the self and on disorders of the self, such as narcissism. Object relations theory is another area of contemporary psychoanalysis. This theory emphasizes the importance of early childhood relationships, particular with parents, but focuses on the social, not sexual, nature of these relationships. The authors review theoretical and empirical work on childhood attachment and adult relationship styles, much of which is anchored in object relations theory. Finally, the authors review work on the psychological impact of parental divorce on children, concluding that, although stressful, most children whose parents divorce lead happy and healthy lives.