The authors review the history of controversy regarding conflict versus deficit. They suggest that conflict, when conceptualized within the theory of self psychology, may arise in one of two ways, either: (1) along with deficit when caregivers are unable to provide developmentally needed selfobject functions, and, at the same time, these needed caregivers are also feared; these conflicts are unconscious and potentially pathogenic. Or: (2) conflicts may appear secondary to deficit. Such conflicts also require the analysis of selfobject transferences that have arisen on the basis of the underlying deficit. A clinical example demonstrates that deficit related to the oedipal phase may give rise to oedipal-selfobject transferences, requiring their working through for a successful termination.