The purpose of this paper is to give a psychoanalytic view of psychosis from a Lacanian perspective. Psychosis being a broad subject, I will elaborate and unfold some of Lacan's theory with particular reference to three areas -the subjects relation to a) reality; b) sexuality; c) language, while in conjunction to this using the novel American Psycho to illustrate and amplify on this theory. While Freud may have been slightly ambiguous in his distinction between psychosis and neurosis, Lacan was decidedly clear in the stand-alone structure that both psychosis and neurosis had (Benvenuto & Kennedy, 1986:144). One cannot have a neurotic structure and then become psychotic. How, as we shall see later on, the subject fits into a particular structure is determined not only at an early age but also by a number of other developments.