Users of psychedelic drugs frequently report various types of healing effects after the experience has completed. How these substances actually do the healing work is still being understood. I argue that the phenomenology of the psychedelic experience is relevant to and doing at least some of the healing work. This occurs in part via the phenomenon of transformative experiences. Psychedelic experiences provide insight into first and second order desires of an individual. They alter an individual’s self-narrative and provide an ideal to aim for in addition to the motivation to achieve that ideal. Additionally, psychedelic experiences foster feelings of connection to other people and nature. This heals through altering an individual’s in-group/out-group perceptions and provide a sense of oneness which increases accurate perspective taking. The experience of ego-dissolution had under psychedelics can be compared to the ultimate transformative experience—death—which facilitates the healing process. These experiences promote social healing and serve as a reopening of previously closed possibilities due to trauma or mental illness.