The authors describe the methods used at a veterans' hospital for dealing with problem drinkers. Supervision in specially modified closed wards was found to be the best physical setup. Problem drinkers, with the exclusion of the uncoöperative, the deteriorated, and the psychotic, lived together. Group and individual psychotherapy were used to orient the patients to the concept of alcoholism as a symptom. Then the patients were given talks on some basic concepts of personality development. Later on they were encouraged to dramatize certain critical and typical situations which confront the alcoholic. This proved to be an extremely useful method of giving insight and of providing catharsis. The participation of the local Alcoholics Anonymous group was found very helpful in many of the practical problems the patients faced upon discharge. Evaluation of this program must await the accumulation of follow-up data.