Abstract: A synthesis of psychoanalytic ideas and educational practice was achieved in the works and thought of Lili Peller, as reviewed in a collection of her papers. The influence of Freud and Montessori enabled Peller to combine theory of the Montessori teaching method with application of important principles of child psychology, in psychoanalytically-oriented nursery schools. Peller's designs for a "children's house" create a living environment which facilitates the child's growth and development. Early learning depends on human interactions--with the mother, teacher, and other children--that encourages the child to develop his sense of self and character. Observations of child's play provide the child educator with insights on cognitive, affective and physical growth. Peller recognized that language and literature are potent developmental forces on the child. Young children as well as their teachers have benefited from Peller's contributions to the field of early education.