This chapter deals with Lipps’s research in aesthetics, which, together with empathy, is certainly his most famous contribution in the history of knowledge. I offer, for the first time, a comprehensive discussion of Lippsian aesthetic thought, showing that it is not simply reducible to the “aesthetics of empathy” with which it is usually equated. I begin by placing Lipps’s aesthetic ideas in the intellectual context of the time, namely, that of the psychoaesthetic research tradition and, more specifically, the psychoaffective approach to aesthetics as it prevailed in Germany and Austria between the late nineteenth and early twentieth centuries. A further aim of this chapter is to clarify how Lipps envisioned aesthetics as a psychological discipline, notably in light of his changing conception of psychology and its relation to other disciplines. I also highlight the four stages in the evolution of his aesthetic ideas between 1883 and 1909. The chapter’s last section has as its topic the fourth period, during which Lipps focused on the concept of aesthetic empathy and tended toward a holistic approach to aesthetic phenomena, and which represents—both quantitatively and qualitatively—the most important part of his aesthetic work.