The Industrial Neurosis Unit of Belmont Hospital has one hundred beds, two-thirds of which are occupied by males. The vast majority of the patients are chronic psycho-neurotics and psychopathic personalities, who show poor social adjustment. The material treated here is what is usually labelled as “hopeless.” Letters from Out-Patient Departments, seeking admission are prefaced, “We know this is a hopeless case …,” or “If you cannot help him then there is no hope for him …,” etc. During the four years of its existence the Industrial Unit has evolved and practised a variety of techniques of group psycho-therapy, in addition to the orthodox psychological and physical treatments available in modern psychiatric hospitals. More and more importance is being attached to the value of group methods here, to the extent that some doctors, after taking a brief history, thereafter employ group-therapy exclusively. This paper is an attempt to discuss the relative values and roles of therapy carried out at individual and group levels in the Industrial Unit.