Which psychological disorder is associated with loss of contact with reality?

The psychological disorder that is associated with a loss of contact with reality is indeed psychosis. This condition is characterized by significant disruptions to an individual's thoughts, perceptions, and understanding of reality. People experiencing psychosis may have hallucinations (seeing or hearing things that are not present) or delusions (firmly held false beliefs).

In contrast, neurosis refers to conditions that cause distress but do not impair an individual's perception of reality, such as anxiety or obsessive-compulsive disorders. Depression and anxiety, while they significantly affect a person's emotions and behaviors, do not inherently involve the kind of reality distortions seen in psychosis. Thus, the defining feature of psychosis—an altered state of reality—is what distinguishes it as the correct choice in this context.