When compared to the visibility and popularity of Buddhism in both Western academia and popular culture – particularly in light of the recent ‘mindfulness revolution’, Daoism can appear to be of only marginal interest and significance vis a vis its impact on Psychology and Psychotherapy; yet in this chapter author hope to demonstrate that this comparatively side-lined wisdom tradition, has exerted a subtle, understated yet substantial impact. The popular perception of Daoism has arguably been shaped by a process of ‘Disneyfication’. One of the earliest encounters between Western Psychology and Daoism was through the work of Carl Gustav Jung. Jung’s prior, historic break from Freud was largely based on the latter’s need to maintain his authority, his singular focus on sexual aetiology and exclusion of matters which he perceived as being religious.