The purpose of this research is to explore the process of transformation of and the factors influencing the sense of psychological ‘Ibasho’ in the professional lives of employees. We conducted semi-structured interviews with 15 people in their late 40s to 50s working in organizations. Data collected from research collaborators was analyzed using the modified grounded theory approach. Based on the results,10 category groups,31 categories,and 84 concepts were generated. The main findings are as follows. 1) To rise from the decline of the sense of psychological ‘Ibasho’,or to acquire it after its loss,one goes through the processes of self-reaction,self-reflection,self-understanding,self-transformation,and externalized action and,depending on this process,the way of grasping the sense of psychological ‘Ibasho’ varies from a non-subjective way to a subjective way of thinking. 2) The factors affecting the sense of psychological ‘Ibasho’ are “environmental factors (relationships with people,relationship with workplace,relationship with organization)” and “engagement with work and self-identification.” 3) “Relationships with people,” “relationship with workplace,” and “relationship with organization” are influenced by events such as transfers due to changes in work or the environment. 4) “Engagement with work and self-identification” has a developmental stage. 5) Loss of the sense of psychological ‘Ibasho’ is related to identity.