Psychological sabotage represents an underexplored dimension of covert action, distinct from traditional sabotage that primarily targets physical systems. This article conceptualises psychological sabotage as deliberate actions designed to induce uncertainty, fear, and operational paralysis, exploiting human cognitive biases and organisational vulnerabilities. Through a qualitative, cross-era, and comparative methodology, the study develops a typology encompassing false evidence, ambiguity-inducing tactics, rumours, contamination claims, decoy devices, and cascading psychological effects. Historical and contemporary case studies—from classical and medieval operations to World War II resistance movements, industrial-era labour disruptions, and post-2000 cyber and hybrid threats—illustrate recurring mechanisms and strategic impacts. The findings demonstrate that psychological sabotage can achieve disproportionately high operational disruption relative to physical damage, highlighting its cost-effectiveness, deniability, and adaptability. Implications for contemporary strategic studies underscore the need to integrate perception-based threats into risk assessments, counterintelligence planning, and cybersecurity frameworks.