Phantom limb pain is very common among amputees, and up to 80% of amputees have reported pain-related experiences with phantom limb pain. Various treatment measures have been adopted for PLP in clinical treatment, including psychological treatment actually. The purpose of this article is to review and evaluate psychotherapy that has been proven to be effective in the last 5 years and to understand its development and clinical application. These include hypnotherapy, mirror therapy, virtual reality and augmented reality, motor imagery, eye movement desensitization and reprocessing. A comprehensive literature search was conducted by the authors using PubMed, Google Academic and China National Knowledge Infrastructure, and the search terms "phantom limb pain", "psychological treatment" and "psychological factors" were used to collect all available literature reports on psychological intervention for phantom limb pain, including literature reviews, randomized controlled trials, and case reports. Besides, literature retrieval was also conducted on the mechanisms and applications of relevant psychotherapy. The most commonly used psychotherapy for phantom limb pain is hypnotherapy, mirror therapy, virtual reality and augmented reality technology, motor imagery and eye movement desensitization and reprocessing. These treatments have been proven to be effective in clinical trial studies. However, they still need more clinical randomized controlled trial results to prove its effectiveness and explore the potential mechanism of treatment.