Freud's personal experiences significantly shaped his psychoanalytic theories. Growing up in Vienna in the late 19th century, Freud was exposed to the strict sexual mores of Victorian society, which influenced his views on sexuality and its impact on psychology. His complex relationship with his parents, particularly his admiration for his mother and competitive feelings toward his father, are thought to have contributed to his concepts of the Oedipus complex and family dynamics within psychosexual development stages. Moreover, Freud's own experiences with neurological disorders and his interest in treating hysteria and neurosis provided practical insights that led to the development of his theories on the unconscious mind and defense mechanisms. His self-analysis, particularly his interpretation of his dreams and childhood memories, also played a crucial role in formulating his theories. This introspection led Freud to believe in the profound impact of the unconscious and childhood experiences on adult behavior and personality, central tenets of his psychoanalytic theory.

Freud's psychoanalytic theories describe anxiety as a signal of danger from the unconscious, arising from internal conflicts among the id, ego, and superego. He identified three types of anxiety: neurotic, moral, and realistic. Neurotic anxiety occurs when there's a fear that the id's impulses will be expressed unchecked, leading to punishment or other negative outcomes. Moral anxiety stems from conflicts between the ego and the superego, where feelings of guilt and shame arise from thoughts or actions that go against moral or societal standards. Realistic anxiety is akin to fear, a rational response to a perceived threat in the external world. Freud believed that these forms of anxiety are managed through various defense mechanisms employed by the ego, such as repression, denial, and displacement. These mechanisms help to keep anxiety-provoking thoughts and impulses from becoming conscious, thereby protecting the individual from experiencing overwhelming anxiety.

Dream analysis holds a central place in psychoanalytic theory, regarded by Freud as the "royal road to the unconscious." He believed that dreams are a form of wish fulfillment, serving as a means for repressed desires and unconscious thoughts to be expressed in a symbolic form. In therapy, dream analysis involves the therapist encouraging the patient to recall and describe their dreams, then helping them explore the latent content (the hidden psychological meaning) behind the manifest content (the literal storyline of the dream). This process can reveal insights about the patient's unconscious conflicts, desires, and experiences that may be influencing their current psychological state. Freud's method of dream analysis emphasizes the role of symbols in dreams and how personal associations and the broader cultural context can influence their interpretation. Through this analysis, patients can gain a deeper understanding of their unconscious mind, potentially leading to resolution of underlying issues and personal growth.

Freud's views on sexual development, particularly his emphasis on the psychosexual stages and the role of sexuality in personality formation, have been met with criticism and contrast significantly with modern perspectives in psychology. Contemporary psychologists tend to view sexual development as a more complex and multifaceted process that is influenced by a broader range of biological, psychological, and social factors, rather than the more narrow focus on erogenous zones and the resolution of the Oedipus complex as proposed by Freud. Moreover, modern research in developmental psychology emphasizes the role of attachment, cognitive development, and social learning in shaping personality, rather than the psychosexual stages. While Freud's theories highlighted the importance of early childhood experiences, contemporary theories provide a more nuanced understanding of development that includes genetic factors, peer influence, and cultural context. Additionally, Freud's theories have been critiqued for their heteronormative assumptions and lack of empirical support, leading to a more inclusive and evidence-based approach in current psychological research and practice.

In psychoanalytic theory, defense mechanisms are psychological strategies employed by the ego to manage anxiety and protect the self from psychological distress. Freud identified several defense mechanisms, including repression, denial, projection, rationalization, displacement, sublimation, and regression, each serving to cope with internal conflicts and external stressors by distorting or transforming reality in some way. For example, repression involves unconsciously blocking unacceptable thoughts or impulses from entering consciousness, while projection involves attributing one's own unacceptable feelings to others. In everyday life, these mechanisms operate beneath our conscious awareness, shaping our perceptions and interactions in ways that minimize anxiety and maintain psychological equilibrium. While defense mechanisms can be adaptive, allowing individuals to navigate stressful situations and maintain their sense of self, Freud also noted that overreliance on these strategies could lead to unhealthy patterns of behavior and hinder emotional growth. Understanding and recognizing the use of defense mechanisms can offer valuable insights into one's behavior and emotional state, potentially leading to more adaptive coping strategies and healthier psychological functioning.