This article analyses current and future issues about the distinctive contribution of professional educational psychologists in a changing English service context. This is about the context of greater inter-professional and multi-agency working, but also the moves towards more quasi-market systems of service delivery. I examine the identity and service focus dilemmas that educational psychologists have to address. This raises questions about the distinction between basic and applied psychology, the nature of applying psychology and whether applying psychology requires professional educational psychologists. One of the main arguments is that how we think about applying psychology is crucial for the future in a changing context. The task is for professional psychologists to be innovative in service terms to ensure a continuing and valued position in the service network. The significance of this analysis of educational psychology in an English context for other countries is also discussed.