In this paper the literature of shamanism as well as psychology, biofeedback, hypnosis and other alternative therapies was researched, synthesized, and combined with direct clinical experience to provide a broad context for discussing why shamanic healing works. This approach was used in order to move shamanism out of the area of magic and sleight-of-hand into explanation systems more acceptable to western minds. Shamanic healing methods are demonstrated to be similar to those underlying many alternative therapies, especially in their use of altered states of consciousness and self-healing. Examples are given of their effectiveness in overcoming the broad spectrum of illnesses caused by alienation and separation which are presently beyond the healing powers of allopathic medicine and psychology. Finally, ways to integrate shamanic philosophy and the potential efficacy of its healing approaches into psychology and allopathic medicine are suggested, an integration shown to be prerequisite to a genuine lasting cure for the ills of an alienated society.