This study aims to analyze the personality structures of the characters in the short story Tājir al-Bunduqiyyah by Kamil Kailani using Sigmund Freud’s literary psychology approach. The focus of the study includes the personality structures of id, ego, and superego, as well as the defense mechanisms displayed by the characters Antonio, Shylock, and Barsha. This research employs a qualitative descriptive method with content analysis techniques on the dialogues and narrations in the short story. The data were collected through reading, note-taking, and classifying quotations based on Freud’s psychoanalytic theory.The results show that the personality structures of the characters are influenced by the interaction of the id, ego, and superego. Antonio demonstrates impulsive behavior and unrealistic optimism as forms of the id, anxiety as a form of the ego, and altruism and calmness as forms of the superego. Shylock is dominated by the id through his vindictive, cruel, hateful, and justice-obsessed personality, while the ego appears through his regret after losing the trial. Meanwhile, Barsha exhibits the id through her desire for freedom and admiration, the ego through her resignation to reality, and the superego through her obedience to her father’s will. In addition, the defense mechanisms found in this short story in Antonio’s character include repression, rationalization, denial, and sublimation. Meanwhile, Shylock is dominated by defense mechanisms such as rationalization and projection. As for Barsha, the defense mechanisms identified include the control of desires, which in psychology are referred to as repression, rationalization, and sublimation. This study shows that Sigmund Freud’s psychoanalytic theory can be used to understand the psychological dynamics of characters in Arabic literary works, especially in the short story Tājir al-Bunduqiyyah by Kamil Kailani.