THE ASSUMPTIONS WHICH FORM THE BASIS OF GROUP PSYCHOTHERAPY ARE EXAMINED AND THE ADAPTATIONS OF CLINICAL GROUPS IN ASSISTING SOCIALLY DEPRIVED YOUTH (SDY) TO LEAD SATISFYING AND CONSTRUCTIVE LIVES ARE CONSIDERED. THE ACCEPTED CLINICAL MODEL HOLDS THAT DISTORTIONS OF CHARACTER STRUCTURE CAUSED BY UNFAVORABLE DEVELOPMENTAL CONDITIONS CAN ONLY BE ALTERED IF THE INDIVIDUAL OBTAINS ASSISTANCE. ASSUMPTIONS FUNDAMENTAL TO PSYCHOTHERAPY ARE DISCUSSED. ADOLESCENCE WITH ITS CHANGING NATURE, PRESENTS UNIQUE PROBLEMS TO THE PSYCHOTHERAPIST. BECAUSE OF THE USUAL DIFFERENCE IN SOCIAL CLASS BETWEEN GROUP MEMBERS AND THE THERAPIST, FURTHER OBSTACLES ARE ENCOUNTERED. RESISTANCE TO TREATMENT, PART OF CONSISTENT GROUP PATTERNS, MAY BE TACKLED IN SEVERAL WAYS. PROBLEMS IN TREATMENT MAY BE MINIMIZED BY (1) FOCUSING ON REALITY, (2) USING THERAPEUTIC RECREATION GROUPS, (3) BASING DISCUSSIONS ON YOUTHS' DESIRES, (4) PROVIDING APPROPRIATE IDENTIFYING MODELS, AND (5) AIDING THE ESTABLISHMENT OF AN APPROPRIATE CODE OF VALUES. CHARACTER PROBLEMS CAN BE REDUCED, BUT IT IS ALSO IMPORTANT TO CREATE AN EXTERNAL SOCIAL STRUCTURE WHICH WILL PROVIDE OPPORTUNITIES FOR SATISFYING LIVING. THIS IS A REVISED VERSION OF A PAPER PRESENTED AT A SPECIAL PANEL ON GROUP APPROACHES IN PROGRAMS FOR SOCIALLY DEPRIVED YOUTH, AMERICAN GROUP PSYCHOTHERAPY ASSN., PHILADELPHIA, PA., JANUARY 26-27, 1966. (PR)