This chapter is dedicated to the analysis of the historical and scientific background of the genesis of cultural-historical theory. It is proposed to conceptualize Vygotsky's theory in the broader context of the history of psychology and philosophy. Particular emphasis is given to the analysis of the crisis of psychology and its various interpretations which were carried out in the late 19th and early 20th century. It is argued that the tension between objectivism and subjectivism can be considered as one of the most important expressions of the crisis in psychology. The chapter includes also an account of an intriguing discussion on crisis and the ways to overcome it in Soviet philosophy and psychology in 1920s.