The present paper argues that a systems theory epistemology (and particularly the notion of hierarchical recursive organization) provides the critical theoretical context within which the significance of Friston's (2010a) Free Energy Principle (FEP) for both evolution and psychoanalysis is best understood. Within this perspective, the FEP occupies a particular level of the hierarchical organization of the organism, which is the level of biological self-organization. This form of biological self-organization is in turn understood as foundational and pervasive to the higher levels of organization of the human organism that are of interest to both neuroscience as well as psychoanalysis. Consequently, central psychoanalytic claims should be restated, in order to be located in their proper place within a hierarchical recursive organization of the (situated) organism. In light of the FEP the realization of the psychoanalytic mind by the brain should be seen in terms of the evolution of different levels of systematic organization where the concepts of psychoanalysis describe a level of hierarchical recursive organization superordinate to that of biological self-organization and the FEP. The implication of this formulation is that while “psychoanalytic” mental processes are fundamentally subject to the FEP, they nonetheless also add their own principles of process over and above that of the FEP. A model found in Grobbelaar (1989) offers a recursive bottom-up description of the self-organization of the psychoanalytic ego as dependent on the organization of language (and affect), which is itself founded upon the tendency toward autopoiesis (self-making) within the organism, which is in turn described as formally similar to the FEP. Meaningful consilience between Grobbelaar's model and the hierarchical recursive description available in Friston's (2010a) theory is described. The paper concludes that the valuable contribution of the FEP to psychoanalysis underscores the necessity of reengagement with the core concepts of psychoanalytic theory, and the usefulness that a systems theory epistemology—particularly hierarchical recursive description—can have for this goal.