Psychosis involves a loss of contact with reality — delusions or hallucinations. Neurosis is an older term for persistent distress or anxiety where that contact remains intact. Neurosis has largely been dropped from clinical use; psychosis remains a current and precise term.
The core difference
The classic dividing line is whether contact with reality is retained.
- neurosis — distress, anxiety or obsessive patterns, with reality testing intact. Largely historical as a clinical term.
- psychosis — loss of contact with reality: delusions, hallucinations, disordered thinking.
Why neurosis fell out of use
It came from psychoanalytic tradition and covered too broad a range to be diagnostically useful. Modern manuals replaced it with specific categories — anxiety disorders, obsessive-compulsive disorder and others. Neurotic survives in everyday speech as a mild, usually joking description, which is a long way from its clinical past.
This page explains the words. It is not a diagnostic guide.