Neurosis and psychosis are two terms we use to classify various psychological disorders. These two common terms are interchangeably used by many people these days. This article aims to provide a better understanding of neurosis and psychosis. Before we further discuss it why not we take a paper and write down all the differences we could think of.In neurosis there is excessive stress, worrying, phobia or obsessions. A person with neurosis has difficulty in adapting with stress but is in contact with reality and is aware about the surroundings. On the other hand, in psychosis person loses the sense of reality. Psychosis affects how we perceive things, our thought process and our feelings. Disorders like schizophrenia, bipolar mood disorders, delusions fall under psychosis. In neurosis there is a battle between unconscious conflicts and emotional distress. In psychosis there could be hallucinations, delusions, faulty judgement making procedure etc. In psychosis, psychiatrists prescribe anti-psychotic medications for treatment.Neurosis is a mild functional disorder whereas psychosis is a severe mental illness leading to social maladaptation. There is lower risk of self-harm in neurosis as compared to psychosis. In neurosis speech is intact where as in psychosis speech is affected that is speech is distorted. In neurosis thinking could be slow but in psychosis thinking is distorted. In neurosis medication is not necessarily needed, therapy works equally efficiently. In psychosis, a person needs both medication and therapy.