This paper provides a historical, religious-philosophical context for the study of the Daoist text known as The Secret of the Golden Flower. An updated study is conducted into the controversy over the source of the text including the editions translated by Richard Wilhelm and Thomas Cleary. The main teachings of the text and the basics of two major denominations of Daoism are introduced to ground later critiques of Jung's commentary. The psychodynamics of analytical psychology, especially those concerned with integration of unconscious contents and the realization of the self (individuation) are compared with the psycho-spiritual dynamics of integration in Eastern spirituality based on the Golden Flower text. The paper concludes that it was amiss for Jung to have equated the Western 'unconscious' with states of higher consciousness in Eastern meditation practices, although his claim that Eastern higher consciousness is characterized by a nebulous state of non-intentionality does raise questions about the appropriateness of calling Eastern meditative states 'consciousness'. A new concept is required to characterize the special qualities of this psychic state shared generally by Eastern spiritual traditions and a more meaningful comparison may be found in Jung's concept of the self.