This paper is concerned with 'analytic group therapy', a method of giving interpretations and insight, as distinguished from 'activity group therapy' (Slavson) in which derivative insight is obtained through acting out. Inasmuch as the author considers analytic group psychotherapy based fundamentally on the same psychodynamics as individual psychotherapy, a comparative study of transference phenomena is in order. The essence of transference in group therapy is as follows: transference is 'diluted and less charged with libido', is established quicker, and is complicated by sibling relations and identification mechanisms resulting from the multipolarity of the situation. The latter, no doubt, promotes the parental significance of the therapist. In contrast with the neutral nonuse of the transference in 'activity groups', in analytic group therapy the parental role is played out (or 'acted') by the therapist more realistically than in individual treatment.