Debate on the locus of dysfunction in psychotic speech or thought diso
rder continues. Research in the area tends to reflect researchers' ass
umptions about the relationship between language and thought, and thes
e determine the nature of the methodologies used. The circularity of a
rgument produced in this way is inevitable, while fully contextualized
comprehensive descriptions of interactions with psychotic patients ar
e lacking. This article outlines a method of analysis which will yield
basic descriptions, and produce data readily comparable to naturally
occurring conversation. It includes consideration of context, conversa
tion analysis, cohesion analysis, and tone-unit analysis. A crucial fe
ature of the method is serious attention paid to the role of the liste
ner in the creation of misunderstandings in conversations with psychot
ic speakers.