Australia is engaged in the process of reconciliation. In this paper we argue that psychology has a key role to play in the process, and outline a position on psychology and reconciliation. We begin with and overview of reconciliation and by identifying the some of the factors that have impeded psychology’s involvement with Indigenous people. We argue that recent developments in psychology, such as the rise of narrative and critical psychology, along with the Indigenous Mental Health Movement, have encouraged the development of specific psychologies aimed at decolonisation, empowerment, and social transformation. We suggest that critical awareness and cultural competence within a social justice framework are key elements of a psychology committed to reconciliation.