Transactional Analysis is a psychological theory developed by Eric Berne in the 1950s. It focuses on understanding human interactions by analyzing the transactions or communications between individuals. The theory categorizes these interactions into three ego states: Parent, Adult, and Child, which represent different ways of thinking, feeling, and behaving. In Transactional Analysis, each ego state influences how people respond to one another. The Parent state reflects learned behaviors and attitudes, the Adult state represents rational thinking and problem-solving, and the Child state embodies emotions and instincts. By recognizing these states, individuals can improve their communication and relationships.