In scientific work it is often advantageous, when the solution of one problem presents difficulties, to take up a second problem, just as it is easier to crack two nuts together instead of separately. Accordingly we are confronted not merely with the problem: How can painful and fearful dreams be the fulfilments of wishes? but we may also, from our discussion so far, raise the question: Why do not the dreams which show an indifferent content, but turn out to be wish-fulfilments, show this meaning undisguised? Take the fully reported dream of Irma’s injection; it is in no way painful in its nature, and can be recognised, upon interpretation, as a striking wish-fulfilment. Why, in the first place, is an interpretation necessary? Why does not the dream say directly what it means? As a matter of fact, even the dream of Irma’s injection does not at first impress us as representing a wish of the dreamer as fulfilled. The reader will not have received this impression, and even I myself did not know it until I had undertaken the analysis. If we call this peculiarity of the dream of needing an explanation _the fact of the distortion_ of dreams, then a second question arises: What is the origin of this disfigurement of dreams? If one’s first impressions on this subject were consulted, one might happen upon several possible solutions; for example, that there is an inability during sleep to find an adequate expression for the dream thoughts. The analysis of certain dreams, however, compels us to give the disfigurement of dreams another explanation. I shall show this by employing a second dream of my own, which again involves numerous indiscretions, but which compensates for this personal sacrifice by affording a thorough elucidation of the problem. _Preliminary Statement._—In the spring of 1897 I learnt that two professors of our university had proposed me for appointment as Professor extraord. (assistant professor). This news reached me unexpectedly and pleased me considerably as an expression of appreciation on the part of two eminent men which could not be explained by personal interest. But, I immediately thought, I must not permit myself to attach any expectation to this event. The university government had during the last few years left proposals of this kind unconsidered, and several colleagues, who were ahead of me in years, and who were at least my equals in merit, had been waiting in vain during this time for their appointment. I had no reason to suppose I should fare better. I resolved then to comfort myself. I am not, so far as I know, ambitious, and I engage in medical practice with satisfying results even without the recommendation of a title. Moreover, it was not a question whether I considered the grapes sweet or sour, for they undoubtedly hung much too high for me.