Psychoanalytic theory has been criticized for decontextualizing individual development. While recognizing the historical neglect of sociocultural context in psychoanalytic theory, this article raises attention to psychoanalytic contributions to the exploration of sociocultural issues in psychotherapy and calls for a systematic inclusion of cultural competence as a core area of emphasis of psychoanalytic psychotherapy. The article includes a brief review of cultural competence in professional psychology, and both a critique of psychoanalysis regarding the neglect of sociocultural context in psychotherapy and a discussion of psychoanalytic contributions to a complex understanding of sociocultural issues in psychotherapy. Specific approaches to cultural competence that extend existing psychoanalytic theory concerning sociocultural context are presented. These include the recognition of historical trauma and neglect of sociocultural issues, indigenous cultural narratives, role of context in the use of language and expression of affect, influence of experiences of social oppression and stereotypes on therapeutic process and outcome, and the dynamic nature of cultural identifications.