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Freud's theoretical writings on hypnosis are reviewed and reasons for his abandoning of this clinical tool are suggested. Clinical hypnosis is an altered state of consciousness which has its own felt reality and does not bypass the ego. In fact, many of the essential characteristics of hypnosis are ego functions. Functions such as focused or free-floating attention, deep absorption, enhanced memory, imagery, ego-receptivity, ego-activity, defenses, and the capacity for self-observation all remain intact in hypnosis. This view is contrasted with Freud's early uses of hypnosis which were not informed by his later psychoanalytic discoveries. Clinical material is presented which illustrates how the conversion from a psychoanalytic psychotherapy to a hypnoanalysis resolved a therapeutic impasse and allowed for a productive treatment. Fromm's view of hypnosis, as a special form of adaptive regression in the service of the ego is clinically illustrated. It is postulated that the altered state of hypnosis facilitates an increased ego mobility. It is the psychic mobility of hypnosis which facilitates the vacillation between primary and secondary process thinking; the experiencing ego and the observing ego, and conscious and unconscious experience. It is largely the ego-mobility and available memory in hypnosis that account for its advantages as compared to non-hypnotic treatment. Relational and self-psychological components of hypnosis are also proposed....