Psi-Ops: The Mindgate Conspiracy.
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Third-person shooter on the PS2 that put emphasis on physics along with various psychic powers your character acquires throughout the story and how they interact with the physics. You get access to different powers as you play such as telekenesis (lift things with your mind), pyrokenesis (fire spell), mind control (take control of unaware guards), mind drain (steal small amounts of mana(?) from corpses or large amounts from unaware living guards, causing their heads to explode in a super satisfying manner), aura view (see interdimensional beings ..one of the levels gets kind of cosmic horror on you out of nowhere) and remote view (your mind leaves your body allowing you to scout ahead).
Telekenesis really steals the show though. You can pick up crates, explosive canisters, boulders etc. to throw at enemies, or pick up the enemies themselves and smash them against walls, throw them in to furnaces, off ledges, whatever you want. You can even stand on top of physics objects, then telekenesis them and use them to float over gaps, or stand atop them while mowing down enemies with your rifle in the other hand. For how much praise HL2 got for its physics and the gravity gun, I think Psi-Ops did it better 5 months earlier. See 1:09 in this video for an idea:
The game had so much potential for sequels and even ended in a cliffhanger, but then Midway died and that was the end of that. Damn shame.