Adolescents with Type 1 diabetes (DM1) are at significant risk for depression compared to their non-diabetic counterparts and frequently demonstrate poor glycemic control. Comorbid depression may further exacerbate inadequate metabolic control by creating emotional barriers to effective adherence. Caregiver response to the diagnosis and management of DM1 also has implications for diabetic teens' psychological and physical health. This article describes the development and implementation of a group intervention for adolescents with DM1 and a parallel caregiver support group. The group intervention is designed to improve psychosocial functioning and medical adherence in teen participants and to reduce diabetes-specific stress in caregivers. (Contains 2 tables.)