This article examines the complex, sometimes conflicting, influences of China’s Communist movement on psychotherapy and mental illness. The study is centered around the diary of a Chinese woman who simultaneously received therapeutic treatment of neurasthenia while remolding her consciousness as part of the “thought reform” campaign at the Shanghai Police School. Additionally, the study situates this diary within the broader history of psychotherapy in Communist China with highlight on the eventful life of Jiayin Huang, China’s leading psychotherapist who helped the neurasthenic patient before being forced out of the therapeutic profession. This contextualized case study produces several findings. It is found that psychotherapy and thought reform converged in several aspects, including their diagnostic and interventional functions. Meanwhile, psychotherapy and thought reform also faced irreconcilable theoretical and normative discrepancies that eventually led to the decline of psychotherapy. Finally, it is argued that China’s Communist movement exerted seemingly paradoxical impact on the neurasthenic patient. On the one hand, it pathologized the patient’s psychology on an ideological ground; on the other, it promised the possibility of spiritual salvation through dedication to the revolutionary cause.