This research explores the interplay between chakra activation and Erikson's psychosocial development theory, examining how energy imbalances may influence psychological growth, emotional well-being, and self-actualization. By employing textual analysis, conceptual mapping, and pattern recognition, the study investigates the theoretical connections between these two frameworks, revealing how each chakra corresponds with a specific stage of Erikson's psychosocial development. The findings suggest that balanced chakra activation facilitates successful resolution of Erikson's developmental crises, leading to enhanced emotional maturity and psychological stability. Conversely, chakra imbalances are linked to emotional distress and identity struggles, mirroring the conflicts associated with unresolved psychosocial stages. The research also highlights the positive impact of chakra alignment practices such as yoga, meditation, and energy healing on psychosocial well-being, offering a holistic approach to psychological development. Specifically, the Crown Chakra correlates with self-actualization, aligning with Erikson's final stage of ego integrity vs. despair, while the Root Chakra is crucial for establishing trust in the early stages of life. This study proposes an integrative model of human development that combines energy psychology and Erikson's psychosocial theory, offering a comprehensive framework for emotional healing, personal growth, and self-actualization. Human development has long been a subject of study across various disciplines, including psychology, spirituality, and neuroscience. Western psychology, particularly Erik Erikson's psychosocial development theory, outlines the stages of human growth, emphasizing the role of identity, ego development, and life transitions. On the other hand, Eastern traditions, particularly the chakra system, provide a holistic framework for understanding personal and spiritual evolution through energy centres in the body. The chakra system, rooted in ancient Indian philosophy, describes seven energy centres that influence an individual's physical, emotional, and spiritual well-being. These chakras align with various psychological and emotional states, mirroring Erikson's eight-stage model, which describes the crises individuals must resolve at different life stages. Despite originating from different traditions, these two models share a fundamental focus on self-awareness, personal transformation, and holistic well-being. In recent years, there has been an increasing interest in integrating spiritual and psychological perspectives to provide a more comprehensive understanding of human development. However, limited research has explored the direct correlation between chakra energy balance and Erikson's psychosocial stages. This study seeks to bridge this gap by examining the interplay between energy (chakras) and ego (Erikson's theory), offering a multidimensional approach to personal growth. The rationale for this study is based on the need to combine Eastern spiritual wisdom and Western psychological theory to offer a holistic model for understanding human development. While Erikson's framework provides a structured understanding of identity formation, it does not address the energetic and spiritual aspects of growth. Conversely, while the chakra system explores inner energy dynamics, it lacks empirical validation in psychological development. By exploring the connection between chakra imbalances and psychosocial crises, this research can contribute to psychology, counselling, and holistic healing practices. Understanding this interplay may offer: 1. A new perspective on mental health-showing how energy imbalances influence psychological distress. 2. A deeper understanding of identity formation-integrating spiritual and psychological insights. Citation - Hattangadi, V., & Shinde, S. (2025). The interplay of energy and ego: understanding human development through chakras and Erikson’s theory. IOSR Journal of Business and Management, Volume 27(Issue 2), Ser. 6. https://doi.org/10.9790/487X-2702062229