In this paper, I have attempted a historical analysis of what Jung might have been thinking when he wrote the 'Seven sermons'. To this end, I tried to ascertain which Gnostic texts Jung may have consulted before writing it. These documents were then compared with the 'Seven sermons', and numerous affinities noted between it and the Gnostic texts. Jung's contemporaneous academic works were then compared with this treatise, and parallels were established between the 'Seven sermons' and Jung's emerging psychology of the unconscious. In the process, an attempt was made to show how Jung made use of Gnostic themes in his emerging psychology. While there is no way of knowing precisely what Jung was thinking when he wrote the 'Seven sermons', it is clear that he was well acquainted not only with the work of Basilides, but also with the work of other Gnostic thinkers. It is not enough to assume that because Jung chose the pseudonym of Basilides, he was necessarily Jung's primary Gnostic influence. At the same time, it is also evident that Jung was developing his own psychology during the writing of the 'Seven sermons'. We recall Jung's observations regarding the 'Seven sermons', which we quoted on page 17: These conversations with the dead formed a kind of prelude to what I had to communicate to the world about the unconscious . . . All my works, all my creative activity, has come from those initial fantasies and dreams which began in 1912, almost fifty years ago. Everything that I accomplished in later life was already contained in them, although at first only in the form of emotions and images (Jung 21, p. 192). On the basis of what has been published, there are enough affinities between his academic work and this treatise to posit that the 'Seven sermons' played an important role in the emergence of Jung's psychology. Given these numerous parallels, I suspect that Jung's unpublished writings, including the Red Book, would only strengthen the arguments put forth in this paper.