Freud's personal background played a significant role in shaping his theory of gender development. Born in the Victorian era, a time when gender roles were rigidly defined and sexuality was a taboo subject, Freud's upbringing and cultural milieu influenced his perspectives on gender and sexuality. His theory reflects the patriarchal society of his time, with a strong emphasis on male perspectives. This is evident in the development of concepts like the Oedipus complex, where the male experience is central and more thoroughly defined than the female experience in the Electra complex. Moreover, Freud's work was shaped by his own personal experiences and introspections, which were deeply rooted in the norms and values of his time. His upbringing in a traditional Jewish family, his education, and his career in Vienna, a hub of intellectual and cultural activity, all contributed to his theoretical framework. These factors led to a theory that, while revolutionary, was limited by the constraints of its historical and cultural context.

Modern psychoanalysis views Freud's theory of gender development with a mix of respect and critique. Freud's work is acknowledged as pioneering and foundational in the field of psychoanalysis, providing the first comprehensive theory of personality development, which includes gender identity. However, contemporary psychoanalysts often take issue with the specifics of Freud's theory. They argue that his concepts, particularly the Oedipus and Electra complexes, are too focused on heteronormative and patriarchal structures, failing to encompass the diversity and fluidity of gender and sexual identities in the modern world. Modern psychoanalysts tend to focus more on the relational and social aspects of gender development, considering the impact of broader cultural, societal, and familial influences. They also emphasize the role of early relationships and attachment styles in the development of gender identity, moving away from the strictly sexual and instinctual focus of Freud's theory. Nonetheless, Freud’s influence is still evident in the way modern psychoanalysis considers the unconscious and early childhood experiences as critical in shaping an individual's identity.

From a feminist perspective, Freud's theory of gender development has faced significant criticism. Feminists argue that his theory perpetuates gender stereotypes and reinforces a patriarchal view of society. The concept of 'penis envy' in the Electra complex is particularly contentious, as it suggests that female development is defined by a sense of lack and inferiority compared to males. Feminist critics argue that this concept reduces female psychology to a reaction to male anatomy and reinforces a male-centric view of sexuality and identity. Additionally, Freud's theory is criticized for its emphasis on male experiences and perspectives, often marginalising or misrepresenting female psychological experiences. Feminist psychoanalysts have attempted to revise and reinterpret Freud's theories to include a more balanced and nuanced understanding of gender and sexuality, focusing on the social and cultural constructs that shape gender identity rather than innate sexual drives.

Freud's psychoanalytic theory has had a significant influence on educational approaches to gender development, though this influence has evolved over time. Initially, Freud's ideas contributed to a greater awareness of the importance of early childhood experiences in shaping gender identity. Educators and child development specialists began to pay more attention to the ways in which family dynamics, particularly parent-child relationships, impact children's understanding of gender roles. However, as educational theory and practice have progressed, there has been a shift towards more inclusive and diverse understandings of gender. While Freud's emphasis on early developmental stages is still valued, contemporary educational approaches focus more on encouraging gender equity, understanding the social and cultural constructs of gender, and acknowledging a broader spectrum of gender identities beyond the binary model proposed by Freud. Educational strategies now aim to challenge stereotypes and biases, promoting a more holistic and inclusive approach to gender development.

Freud's theory of gender development has been significantly adapted and revised in light of contemporary understandings of gender and sexuality. Modern psychologists and theorists have critiqued and expanded upon Freud's ideas to encompass a more inclusive and diverse range of gender expressions and sexual orientations. One major adaptation has been the move away from the binary view of gender as strictly male or female, as proposed by Freud, towards a recognition of gender as a spectrum. Additionally, contemporary theories challenge the notion of 'penis envy' and other Freudian concepts that are seen as reinforcing gender stereotypes. There has been an increased focus on the role of social and cultural factors in gender development, rather than purely on innate sexual drives and family dynamics. Theories of gender development now often integrate concepts from queer theory, feminist psychology, and social constructivism, providing a more nuanced and inclusive understanding of how gender identity is formed and expressed. This contemporary perspective acknowledges the fluidity and complexity of gender and sexuality, moving beyond the limitations of Freud's original framework.