This paper is an attempt to examine the psychoanalytic method of literatureinterpretation by Sigmund Freud in Der Wahn und die Träume in W. Jensens Gradivaand intends to confirm the failures in his applied psychoanalysis. However, this paperdoes not reject psychoanalysis itself, but rather aims to highlight its theoreticalproblems and to utilize its marvelous analytic power more effectively. The method of testing this hypothesis is confronting Jensen’s Gradiva with Freud’sDer Wahn und die Träume in detail in order to emphasize the strangeness,insufficiency and forced nature of Freud’s interpretation which arises from theapplication of the theoretical apparatus of psychoanalysis. Especially it is proved withmorphological survey of images that the delusion and the dreams of the hero are notevoked by the repression of the infantile sexus but by his fascination on theembodiment of a classical ideal in a relief. Thereby this paper shows an alternativereading of Gradiva to that of Freud, and demonstrates a new interpretation on thepsychoanalytic basis.