Freud coined the name and briefly described the narcissism of minor differences. Although he initially regarded it as a form of individual behavior, he later came to see its implications for groups. This paper explores the manifestations of the narcissism of minor differences in psychoanalytic organizations and treatment. In contrast to Freud's observation that the narcissism of minor differences is relatively harmless, I suggest that in the social sphere it harbors the potential for a pernicious escalation into hostile and destructive actions on a widespread scale.