In the nineteen eighties there was a brief but intense period of interest amongst literary critics and theorists in Classical Rabbinic interpretation, and in particular, the genre of commentary known as Midrash. Interest concentrated around the apparent similarities between Midrash and the commentaries and criticism of Derrida, Lacan, Freud, Barthes and others. This essay examines this connection between Midrash and theory in light of the persistent charge from Foucault and others that all hermeneutics is essentially theological. It proceeds by drawing out the aims and frustrations of the literary critics and Jewish scholars involved, and considers in what ways the questions which arose in these years might be pertinent for contemporary literary criticism, theory and institutional practice.