Object-relations theory explains human behavior in terms of a person's inner experiences of others, which are called objects. Internalization of relationships, projective identification, and containment are concepts within object-relations theory that help to explain the confusing and frustrating behavior of acutely psychotic patients. These concepts also provide a framework for understanding the reactions of nurse clinicians to psychotic behaviors. This article explains the basic principles of object-relations theory, illustrates the concepts through a case study, and proposes nursing interventions from an object-relations perspective.