Although some scholars have contended that psychotherapy and new religions are competitors in the therapeutic and experiential marketplace, few attempts have been made to examine the nature of this alleged competition in contemporary society. One reason for this may be the dominant role played by psychologists and psychiatrists in defining reality in today's "psychological society." The present article addresses this problem by positing the functional equivalence of these two different approaches to reality, individual adjustment and growth. Six commonalities between psychotherapy and new religions are identified and discussed as the basis for understanding the functional equivalence of different practices in a pluralistic society. It is concluded that rivalry between new religions and psychotherapy can be best understood from a sociological conflict perspective and may be indicative of larger stresses and strains in society.