This chapter delves into the profound psychological and cultural impacts of Australia’s colonisation on its Indigenous peoples. It opens with a poignant dream recounted by Professor Judy Atkinson, a Jiman and Bundjalung woman, illustrating the terror and grief experienced during the colonial era. This narrative underscores the enduring trauma resulting from violent dispossession and systemic oppression. The chapter examines the concept of national melancholia, suggesting that Australia’s failure to fully acknowledge and mourn the atrocities of colonisation has perpetuated cycles of cruelty, notably in the treatment of refugees and asylum seekers. Drawing on psychoanalytic theories, it posits that unaddressed collective grief manifests as societal malaise, hindering reconciliation and healing. Furthermore, the text critiques the application of Western psychoanalytic frameworks to Indigenous experiences of mourning, emphasising the distinct ontologies and epistemologies of Aboriginal and Torres Strait Islander cultures. It highlights the importance of recognising Indigenous practices of Sorry Business, which facilitate communal healing and resilience. By intertwining historical analysis with psychological theory, the chapter offers a nuanced exploration of the intergenerational trauma stemming from colonisation. It calls for a deeper understanding and acknowledgement of this history as a crucial step towards genuine reconciliation and the creation of a more equitable society.