The intricate interplay between trauma and dissociation has long intrigued researchers and clinicians alike. This review delves into the multifaceted relationship between these two phenomena, shedding light on their complex dynamics and implications for mental health. Beginning with an exploration of the conceptualizations of trauma and dissociation, the review examines the theoretical frameworks that underpin their connection. From early psychoanalytic theories to contemporary neurobiological perspectives, the evolution of understanding in this field is traced, highlighting the nuanced ways in which trauma can manifest as dissociative symptoms. Drawing on empirical evidence from clinical studies and neuroimaging research, the review elucidates the various pathways through which trauma can precipitate dissociative responses. Factors such as the nature and timing of the trauma, individual differences in coping mechanisms, and the presence of comorbid conditions are all considered in elucidating the heterogeneity of dissociative experiences. Moreover, the review explores the role of dissociation as both a defense mechanism and a maladaptive coping strategy, probing the intricate balance between protection and vulnerability in the aftermath of trauma. Furthermore, the review examines the clinical implications of the trauma-dissociation relationship, offering insights into assessment, diagnosis, and treatment approaches. From standardized measures of dissociation to emerging therapeutic modalities such as trauma-focused dissociation, the review synthesizes current evidence to inform clinical practice. Special attention is paid to the importance of trauma-informed care and the need for tailored interventions that address the underlying mechanisms driving dissociative symptoms. Finally, the review discusses future directions for research in this area, highlighting the need for longitudinal studies, cross-cultural investigations, and interdisciplinary collaborations. By elucidating the complex relationship between trauma and dissociation, this review seeks to contribute to a more comprehensive understanding of psychological trauma and pave the way for more effective interventions aimed at alleviating the burden of dissociative disorders.