Freud's psychoanalytic theory proposes that personality develops through stages from birth to adulthood. The id, ego, and superego interact in psychic conflict, which can lead to defense mechanisms and neuroses. Dream analysis and free association are used in psychoanalysis to make the unconscious conscious and resolve inner conflicts. Defense mechanisms like repression and sublimation help manage unacceptable urges. Parapraxes and humor reveal unconscious impulses. Hypnosis is viewed as an altered state that can access the unconscious.