The history of psychoanalysis and psychodynamic psychotherapy in Denmark is briefly described. An important element in developing the psychodynamic thinking in the public mental health service took place in the 1970s where several British psychoanalysts and group analysts helped Danish therapists and analysts starting regular courses in psychoanalytic psychotherapy that were attended by a few hundred psychologists and psychiatrists. The implementation of psychodynamic thinking and practice in the Mental Health System followed over the next two decades, although the Danish welfare system did not economically support patients referred to psychoanalysis, long-term or intensive psychoanalytic psychotherapy. At the new millennium, opposition to psychoanalysis and psychodynamic thinking made it difficult to sustain the relative high level of involvement of psychodynamic practice in both mental health institutions and private practice. The reasons for this are suggested as well as comments on the future.