THE STUDY SOUGHT TO DETERMINE WHETHER INMATE GROUP LEADERS COULD REDUCE STATE ANXIETY IN NEW INMATES; PROMOTE POSITIVE ATTITUDES TOWARD THE ADMISSIONS PROGRAM AND TOWARD FUTURE PSYCHOTHERAPY; AND ASSIST NEW INMATES IN LEARNING THE INSTITUTION'S RULES, REGULATIONS, AND POLICIES. A POSTTEST-ONLY STUDY DESIGN WAS USED TO EVALUATE THE RESULTS OF GROUP COUNSELING FOR 44 FIRST-TIMERS, WHO WERE ASSIGNED RANDOMLY TO AN INMATE-LED, STAFF-LED, OR CONTROL GROUP. GROUP LEADERS WERE MATCHED ON THE BASIS OF THEIR HUMAN RELATIONS AND COMMUNICATIONS SKILLS AND WERE TRAINED IN REALITY THERAPY AND GUIDED GROUP INTERACTION. GROUP COUNSELING, PARTICULARLY THAT LED BY IMATES, PROVED EFFECTIVE IN FACILITATING ADMISSIONS. NEW INMATES WHO WERE COUNSELED BY INMATE GROUP LEADERS EXPRESSED MORE POSITIVE FEELINGS ABOUT THEIR GROUP LEADERS AND ABOUT PSYCHOTHERAPY, EXHIBITED LESS STATE ANXIETY, AND POSSESSED MORE KNOWLEDGE ABOUT THE INSTITUTION'S POLICIES AND RULES THAN DID NEW INMATES WHO WERE COUNSELED BY STAFF GROUP LEADERS. IMPLICATIONS OF THE FINDINGS ARE DISCUSSED. NO TABULAR DATA ARE INCLUDED. A LIST OF REFERENCES IS PROVIDED. (LKM)