Patients with persistent menopausal symptoms, chronic neurotics, ambulatory psychotics, patients with chronic peptic ulcers, and patients from the Follow-up Clinic of the Psychiatric Wards were organized into groups for therapy in Mount Sinai Hospital, New York. The catharsis and recognition of underlying emotions in the group members proved therapeutic in a large proportion of cases. It was discovered that therapy was most effective in those groups where the members were selected on the basis of similarity of their underlying unconscious conflicts. The group work undertaken was found to be a satisfactory response to unconscious needs of the patients and of the hospital personnel, and to the economic demands of the hospital administration.