Exposure to childhood trauma is common in patients with early psychosis and those with clinical high risk (CHR) for psychosis, with up to 80% of patients exposed to some traumatic experience and is associated with increased symptomatology. Researchers are now investigating the various processes by which childhood adversities may lead to symptoms of psychosis later in life. These include attachment, dissociation, dysfunctional cognitive processes, psychodynamic defenses, problematic coping responses, impaired access to social support, behavioral sensitization and revictimization. In this article, I discuss the results of epidemiological, clinical, psychodynamic, neuropsychological, and biological studies addressing the association between childhood trauma and psychosis.