There are many people who spend sleepless nights without any visible reasons. Insomnia could be the problem which prevents them from getting asleep. Approximately one out of three Americans reports having disturbed sleep and chronic insomnia affects 10% – 15% of the population. Insomnia can be acute or chronic and is variable in its presentation and effects(Cline, 2008). In psychology, insomnia is an important topic since majority of the psychological problems may result in sleep problems. In other words, most of the patients who have psychological problems may not sleep well. In fact the first step in treating any mental diseases is providing assistance to the patients to sleep well using medications. If food is necessary to keep the physical health intact, sleep is necessary to keep the mental health intact. Since insomnia is related to sleep disturbance, the importance of insomnia in psychology could not be neglected. This paper briefly analyses the significance of insomnia in psychology. Significance of insomnia in psychology Exposure to stress may contribute to the development or worsening of insomnia. Relationship problems, a chronically ill child or an unrewarding career may contribute to sleep problems (Cause Of Insomnia Psychological, 2011). The problems facing by the current generation in their personal, professional and social lives are immense compared to the people in the past. In other words, current people have more burdens and commitments than the generations in the past. It is difficult for the current people to fulfill their entire commitments well and failure to show justice to any of the commitments may cause stress to them. Increased stress may cause several disturbances in mind and thoughts. A disturbed mind may never sleep well. Since mind is the driving force of body, disturbed minds may cause disturbance in the body and subsequently, sleep failures may occur. Peace is necessary for the mind to advice our body to sleep well. It is impossible for our body to work continuously. Rest is necessary for our body to continue the routine physical works. Same way rest is necessary for our mind to continue its routine psychological works. Sleep is the activity which provides enough rest to the mind. In the absence of proper sleep, people may struggle to maintain their mental health intact. Mental health is the most important thing necessary to lead a healthy life. People with good physical health may struggle to lead a meaningful life if they struggle to achieve proper mental health. In short, sleep is an important entity which helps us in leading a successful life. One of the functions of sleep is to facilitate the consolidation of memory. REM (Rapid Eye movement) sleep in particular is involved with affective, or emotional, memory (Marano, 2003). We have lot of things stored in our memory. Some of them could be in our conscious memory whereas the others could be in the unconscious mind. During day time, conscious mind is active and unconscious mind is sleeping whereas in night conscious mind will sleep and unconscious mind will take control of us. In other words, whatever the things stored in the unconscious mind would be active in the night time. It is not necessary that all the things stored in the unconscious mind would be pleasant ones. Unpleasant things stored in the unconscious mind could cause sleep disturbances during night time. Researchers have evidence that in a certain proportion of sufferers insomnia has an antidepressant effect.