Psychoanalysis was introduced to Greece in 1915 by the progressive educator Manolis Triantafyllidis and was further elaborated by Marie Bonaparte, Freud’s friend and member of the Greek royal family, and her psychoanalytic group in the aftermath of the Second World War. However, the accumulated traumas of the Nazi occupation (1941–1944), the Greek Civil War (1946–1949), the post-Civil-War tension between the Left and the Right, the military junta (1967–1974) and the social and political conditions of post-war Greece led this project and all attempts to establish psychoanalysis in Greece, to failure and dissolution. The restoration of democracy in 1974 and the rapid social changes it brought was a turning point in the history of Greek psychoanalysis: numerous psychoanalysts, who had trained abroad and returned after the fall of the dictatorship, were hired in the newly established Greek National Health Service (NHS), and contributed to the reform of Greek psychiatry by offering the option of psychoanalytic psychotherapy to the non-privileged. This article draws on a range of unexplored primary sources and oral history interview material, in order to provide the first systematic historical account in the English language of the complex relationship between psychoanalysis and Greek society, and the contribution of psychoanalytic psychotherapy to the creation of the Greek welfare state. In so doing, it not only attempts to fill a lacuna in the history of contemporary Greece, but also contributes to the broader historiography of psychotherapy and of Europe.