Psychoanalytic literary criticism, profoundly influenced by Sigmund Freud's work, interprets literature by asserting that texts are deeply entwined with the human psyche. This approach often involves analyzing fictional characters as psychological case studies, applying Freudian concepts like the Oedipus complex, Id, ego, and superego, or exploring the author's psyche and the creative process, viewing art as a pathway to sanity. More advanced variations, influenced by Jacques Lacan, also analyze narrative structures themselves, positing that "the unconscious is structured like a language."

Freud himself pioneered this method with influential essays on works like Shakespeare's Hamlet in The Interpretation of Dreams. While psychoanalytic criticism can offer valuable insights into literary symbols and actions, it has limits; critics like Guerin, et al. warn against a "one size fits all" approach that might overshadow a work's broader aesthetic and significance. Early applications sometimes focused excessively on psychoanalyzing authors from their texts, leading to the understanding that one can only "appropriate" a writer through their work.