Abstract
This article describes homophobia—both institutionalized and internalized—and offers two transactional analysis models for understanding it. The author then discusses homophobia within psychotherapy, including transactional analysis, and deals with clinical issues relating to psychotherapy with lesbian and gay people. A gay affirmative psychotherapy that includes consideration of transference and countertransference phenomena and the therapeutic relationship is described along with a gay affirmative transactional analysis treatment model.