V.S. Naipaul is a Trinidadian-born Nobel Prize (2001) and Booker prize winning (1971) British writer, known as one of the most prolific writers of the Diaspora literature. His novels set in Trinidad and reflect the history and trauma of diasporic (displaced) communities in the colonial and post-colonial world. The present paper is an attempt to study diasporic peoples’ life with socio-psychological perspective and explore the internal conflicts and psychic imbalance through his epic like creation A House for Mr. Biswas (1961). For Diasporic people, the damage in conscious arises in a form of tension of an individual and society which is the outcome of various displacement and cultural diversities. Due to Inter- psychic conflict, some symptoms of neurosis and social- Schizophrenia can be visualized in the character resulted in emotional distance, bewilderment and frustration of human psyche.