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The alcoholics studied appeared to have archaic egos with primitive unstable defenses, predominately denial and regression. Unlike psychotics, they try to deal with reality, showing characteristically: 1, acting-out impulses with or without alcohol; 2, blackouts; 3, dependency on the environment; 4, strong social fears; 5, cruel superegos; 6, introjections and projections. Group therapy strengthens the ego by giving the alcoholic the opportunity to identify with other alcoholics and to express impulses in words which had frightened him when solitary, as well as aiding him to face the reality that he cannot drink. The presence of other group members dilutes a transference which might overwhelm him in individual therapy. The therapist, encouraging him to verbalize his life history, reveals the persistence of past emotions in present difficulties, and the outmoded and ferocious nature of the superego. When a positive transference leads to an identification with the therapist, self-esteem is increased. Much hostile resistance may be encountered during the start of group therapy; the success of the treatment is indicated by improved adjustment in all aspects of life.